RE: Don's believe the MMs6 May 2022 18:00
"4% drop ? On what news ?"
You'll always read the same things in the articles, they pump up the likes of CityFibre and VMO2, and would have us believe that they'll march in and BT will be finished. The articles will brush over the targetted £2 billion annual savings by 2024/25, but emphasise the debt and the pension deficit. As far as I can tell, one third of the £18 Billion debt is lease liabilities, so around £12 Billion financial debt. The pension deficit is in hand, and will likely become a surplus in years to come, at which point the BTPS will be subject to an insurance buyout by the trustees. The lease liabilities will reduce as the properties are handed back to Telereal Trillium, with BT getting a cut of the profits from subsequent sales.
I don't see the threat from the likes of CityFibre, since Openreach/BT have an established Wholesale business which will be hard to replicate, or compete with.
From the articles, you'd think that Openreach was the only string in BT's bow, but BT have a large portfolio of other products like encryption/secure communications, Mobile, Business products, etc, and scale others are lacking. BT is a safe, well established, profitable business, not the basket case implied by the various vested interest media articles.
Much is made of VMO2, but they're starting out with as much debt as BT, and requiring partners to achieve their stated goals. Usually in the days leading up to BT's results, articles hit the internet stating how VMO2 are doing this, that, and the other, and BT better watch out, no doubt see the same this time with the share price taking the usual hit as a result.
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