* Q1 revenue down 7% to 5.25 bln stg, core earnings also
fall 7%
* Sees FY revenue down 5-6%, earnings of 7.2-7.5 bln stg
* Shares down 3%
(Adds CEO comments, shares)
By Paul Sandle
LONDON, July 31 (Reuters) - BT, Britain's biggest
broadband and mobile operator, laid out the impact of COVID-19
on Friday, with earnings forecast to drop by up to 9% this year
reflecting the impact of the virus on its small and large
business customers.
CEO Philip Jansen said BT had helped keep Britain going
during the height of the pandemic, handling a 20% jump in
daytime data as millions worked and schooled at home.
The first quarter was "relatively resilient" in challenging
circumstances, Jansen said, with both revenue and core earnings
falling 7% after it offered credit to its BT Sport customers
when matches were canceled and enterprises delayed projects.
Jansen said BT, which pulled its dividend in May to help
weather the pandemic, now had enough visibility to provide
guidance for the year.
"Despite our strong operational performance in the first
three months of the year, it is clear that COVID-19 will
continue to impact our business as the full economic
consequences unfold," he said.
Shares in the group fell 3.5% to 104 pence by 1020 GMT, not
far from an 11-year low of 98 pence set in May.
BT said it expected to produce adjusted core earnings of
between 7.2 billion pounds ($9.5 billion) and 7.5 billion for
its 2020/21 financial year on revenue down between 5% and 6%.
"These financial results and our outlook for the rest of the
year demonstrate that BT is a resilient business in a resilient
sector," Jansen said. "We have worked tirelessly since the start
of lockdown to help the country stay connected."
Analysts had expected full-year earnings of about 7.5
billion pounds on revenue down 5.6%, according to a
company-compiled consensus.
BT also appointed Rob Shuter, chief executive of South
Africa's MTN Group, to lead its enterprise unit,
replacing Gerry McQuade, who is retiring.
($1 = 0.7613 pounds)
(Editing by Kate Holton and David Holmes)