The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Interesting that correspondence is now between Openreach and Ofcom NOT BT.
Signs of a spine for a change although very politically put.
Or are they just trying to at least get Ofcom to lube up a little before entry?....lol
Dear Tesco, I intend to open a butchers in your store and would like you to provide space for me free. Then you will sell me meat from your in store butchers at a reduced price so I’m can sell it on at a price that undercuts you.
Whilst I appreciate this reduces your profits I still expect you to keep the store in pristine condition and add an extension to allow more customers to come in and buy my meat. I will of course not be contributing to the cost of this.
Let’s discuss.
Will do some digging later but from memory, please correct If wrong but....
Couple of years ago, pre EE, the network was valued and over £60bn.
Property? How much does BT own?
What’s EE worth alone?
What’s full debt? Believe it’s £11bn plus pension of £5-6bn so circa £18bn?
Assets apart from property and physical infrastructure?
Just trying to understand how much the company is worth as it’s seems to be approaching £100bn or at least £80bn after all debt covers ?
So that’s £8 a share if we scrap it...lol
I think ofcom at backing off slightly . No choice if they don’t want the UK falling behind any further in infrastructure.
Imagine where we’d be now if BT had been let to get on with things instead of the stranglehold of ofcom.
It’s not just sour grapes . Anyone can see competition has been disastrous for telecoms. Ofcom should hang their heads in shame
BT Downgraded by Analysts Despite "Making Steady Progress" Morningstar analysts say the telecoms firm is moving in the right direction and its shares remain undervalued, despite a tough regulatory environment James Gard 30 May, 2019 | 11:03AM BT FTSE 100 telecoms giant BT (BT.) has been downgraded by Morningstar analysts amid concerns over regulatory pressure affecting profit margins. Despite the drop in its fair value estimate from 360p to 320p, the company remains undervalued, according to analyst Michael Hodel, with shares currently trading below 200p after sustained share price weakness in recent years. “We believe the firm is gradually moving in the right direction, but progress will likely be slow,” he says. BT has been in a strong position as the only “convergedR21; operator offering fixed-line telecoms, broadband and mobile phone services, but the benefits of this position have started to slow as BT has failed to overcome regulatory, operational and competitive challenges. The most contentious and costly issue for BT in recent years has been its infrastructure business Openreach, which regulator Ofcom forced it to split out from its consumer business in 2017. As owner of the telecoms infrastructure, BT sells network access to the likes of Sky and Virgin, but Morningstar analysts say the company does not make a profit from this operation. “We expect Ofcom will continue to pressure the prices Openreach charges for network access,” Hodel argues; this is one of the main drivers of the share price downgrade. Hodel says the cost of running Openreach has dragged on BT’s profits and revenues as well as stalling its upgrade plans. Currently 3 million customer locations (business and residential premises) have access to super-fast broadband, and BT says it can boost this to 15 million by around 2025 if the regulator allows it to make a better return from Openreach. Regulatory pressures on prices at Openreach have “forced BT to constantly cut costs to preserve margins”, Hodel says. Change at the Top Under former chief executive Gavin Patterson, BT spent big to build market share in its consumer business, setting up BT Sport to take on Sky Sports and buying the rights to Champions League football in 2013. In 2016, BT bought mobile phone company EE, which in 2012 became the first network to roll out 4G coverage. (Today it is the first network to roll out 5G). Nevertheless, BT’s share price has struggled in recent years, falling from nearly 500p in 2016 to nearly 200p today. Brexit is expected to hit the company’s European revenues, and the competition among mobile phone providers has intensified. Vodafone (VOD), which has recently cut its dividend by 40%, faces similar pressures. In terms of City brokers, Numis has a share price target for BT of 340p and a buy rating, just above Morningstar’s fair value, while Societe Generale has just reiterated its buy recommendation with a new target price of 320p. The share price slump has pushed BT’s yield to abo
No reasonable reason for SP!
Fell because they might cut divi then fell because they didn’t....lol
Please stop blaming pension too as that’s been resolved.
Still think it all boils down to Ofcom imho.
Again, damned if Bt don’t invest in infrastructure but have to give it away if they do.
Maybe it’s a stranglehold to sell Openreach? But could backfire with a hostile buyout by a foreign buyer who will stand up to Ofcom
Me too.
Puts things in perspective
I can state as a matter of fact Brexshit has already and is continuing to damage BT!
I suspect it’s not the only one ??
Cost cutting. Pension sorted. Staff reductions. Employee contracts ripped up. Tupee.
This is not streamlining by a desperate failing company. Something is about to happen
Ps apologies for rants I’m bored in work trying to get back some of my lost share profit. Lol
Me too guys got out early and took big tax free payment to keep down bloody tax.
Shares bring in over 4K in divi tax free top up and money in the bank. Would not sell as long as divi remains .
Don’t forget the earlier you retire the longer you live according to figures. Probably why they want us working longer, more tax and less pension. Win win for the Government..lol
Yes fleccy. Talktalk and other competitors don’t have any pension liabilities. And ofcom won’t let Bt/Openreach add these costs in which is totally unfair and biased.
I’m still not convinced BT want to keep hold of OR and could heavily benefit if sold?
Having said all that I’ve just made a great case for a buyout...lol
Just to qualify my recent posts. I’m retired now so don’t get real time info just secondhand. Plus have a copy of all the recent pension and contract changes requested by a mate.
There is more than expected in there. For instance the reduced actuary reduction that many fell for is only temporary for a year. Plus as said there’s the removal of pension rights regarding redundancy and sick. And I think others are right about the two years being a maximum not standard.
Whole point is BT have made it a lot simpler and cheaper to exit staff. Plus the option 'take your chances' and have these assurances as a fall back has now gone. And don’t forget they did all this whilst ending final salary and reducing payments all on the back of an artificially inflated deficit.
BT has pulled a blinder on staff and will undoubtedly use it to reduce numbers especially the 'hated' older guys.
They’ve already said a reduction of 25% is imminent and 'coincidentally' that will cover the dividend. So within a year the wage bill could be £1.5bn cheaper.
Plans are afoot mark my words!
Forgot to say lots worried as excellent compulsory redundancy terms lost in last years pension changes. No more enhancements or early pension payments. This safeguards the pension deficit increasing.
Add this to Openreach employees now separate and room now to remotely staff cheaply.
A plan is cooking
Faulty , been told fight underway as Openreach not guaranteed the shares. Different company
Rxdav you have a good weekend too
Seem we have a few things in common. Grammar school and early retirement..lol
Told today by ex colleague offer if up to two years pay but no enhancement
Tied in with changes to contracts from last year regarding pensions.
20000 mostly managers to go saving £1,5 pa in wages. Mhmm coincidentally that’s the whole divi covered
Next step will be to sell Openreach and then BT can demand the same as other SP's