BT Group investors are underestimating the impact of Sky’s defection to CityFibre - analyst | LSE:BT.A8 Apr 2025 15:31
"BT Group PLC (LSE:BT.A) is facing increased pressure on its earnings outlook, that’s according to analysts at UBS, as the Swiss bank repeated a ‘sell’ recommendation for the telco’s stock.
Analysts, in a note, warn that the impact of Sky’s decision to move broadband customers to CityFibre from mid-2025 has been underestimated by the market.
UBS reckons it could dent BT’s free cash flow by between £150 million and £300 million a year.
The Swiss bank, meanwhile, forecasts revenue decline in BT’s Openreach unit, and asserts that it will need to accelerate its fibre rollout and lower wholesale pricing to stay competitive.
Unless BT makes deeper cost cuts, there could be further downside risk to its free cash flow, the bank added.
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https://www.proactiveinvestors.co.uk/companies/news/1069305/bt-group-investors-are-underestimating-the-impact-of-sky-s-defection-to-cityfibre-analyst-1069305.html