Member Info for Savage_KeyboardR

It's actually very straightforward for BT to be stating the rise in profits will come from cost reductions. This is because BT spent £4.9bn in FYE 2024 on it's FTTP & 5G installations, which are now winding downwards with each passing year (Capex peaked in terms of £ in FYE 2022 at £5.28bn)... so we're talking monster volumes of cash all having been spent on investment, which going forwards is now continuing to fall with each year.

Meanwhile, for areas where all this new capacity has been installed BT will see continued forward growth of sales volumes. That's because installing new capacity does not mean customers all go out and immediately buy up 100% of the newly available capacity. That process takes time i.e. sales lag behind the initial investments but... the sales pick up in pace with each passing month that goes by.

Fast forward another decade or two and 6G emerges plus other new tech, so it's all a bit of a cycle. Ultimately though BT has the biggest network, the best coverage, it's reliable and offers relatively reasonable prices considering the quality.

As well as the massive cost reductions (due to winding down of Capex) there has been growth in sales volumes which in the results had accelerated nicely, so there's plenty more on the way... it's because the investment in the FTTP + 5G is a massive cost but once installed and running the sales just keep on coming for many years ahead.

Go gather it up and buy yourself some more BT stock, whilst it's still at these bargain prices!

IMO the only problem you're gonna have is that you didn't buy more!

DYOR

The more I read... the more the CF + Sky deal looks to have saved CF from what could well have been an extinction event, perhaps within the next year or two?

Yes, Sky gains some visibility, another route to sell to customers can rarely do harm but...

Zooming right out to the bigger picture I think it's the case this deal changes very little on the national scale... anticipated customer volumes appear based on CF's assumptions of its own future growth forecasts. There appears no factoring in of any potential constraints with hitting their stated figures.

I reckon we'll see BT rise and even exceed its previous SP, that is once analysts have properly interrogated the full details of todays announcement.

CF has done well to get this deal with Sky and I think its a smart survival play but can CF survive longe term? I am not so sure that it will.

Carrington - That's pretty much the price I paid for my tranche today too. Agree about Bharti and in my opinion it's not only the investment that he brings to the table but the breadth of experience too. I think BT will do very well with his input.

Au contraire PRK1 + AirForce - BT & EE offer a robust service for pretty reasonable prices. Many I know have tried the likes of Vodafone/Sky/O2 only to find the coverage thin, customer service shocking and reliability being a regular problem - all for the sake a few quid saved monthly... Far better to pay them couple of £'s and have little to no stress and downtime.

Polo Tang has invaded the LSE BT Board 😂😂😂

I have now added👍- Earlier today I believed the drop had further to fall and indeed it did so but... I've now bought up some more stock, as I reckon this drop will be short lived. I had previously thought it wouldn't be possible to buy up any more for under £1.35 (there was a gap at £1.28 which I think became filled up). Today has been a nice buying opportunity because the CityFibre + Sky deal will not meaningfully harm BT. Plenty of market to go around given the substantial appetite for more FTTP + 5G!

It just hit a new intra-day low so I think it has further to fall yet here. A good day for short holders to contemplate closures on their open positions?

Still a long way off from that £1 SP

Looking as though it's continuing to drop from my panel view on HL platform...

Poised to is not the same as 'has struck a deal'... Torygraph are well known for being economical with the truth, little better than the Express and Daily Fail nowadays as they've printed stacks of misleading articles. Oh and even if the deal does get made there's still plenty of market to go around because of the urgent need for plenty more FTTP & 5G throughout the UK.

Arees1969 - if the proposed deal goes ahead. It's not a done deal yet.

The Torygraph prints a whole lot of nonsense and the article states "poised to strike a broadband deal". I.e. no deal has yet been done and even if it were... there's plenty of market to go around esp with the massive growth required over the next decade to support the new Government's ambitions plans for economic growth 👍

As a complete outsider to such schemes (as I've never worked for BT) my observation is anyone with many shares in BT can expect to enjoy rather nice dividend payments by simply holding onto the stock you've accumulated. Not to mention at the current Share Price it's widely acknowledged that BT is currently 'undervalued' and so holding onto your lot is probably a wise move. Naturally, DYOR though.

Also some big short positions are still open here! They'll be needing to buy lots of shares, at much higher prices when compared to the price they opened their short positions at too! When they buy this should push the price even higher yet.

Nice work Kiwitwo! I am in rather healthy profit here (have been for a fair while now) - Keen to buy more in due course though, as I think we'll be seeing a much higher SP in the coming months!

Capex peak is behind us, sales picking up and this new UK Government has to get very serious about growing the UK economy - which has got to involve further investments/pledges/incentives into more FTTP & 5G and resilience/security too. Could we be about to see some major UK + India trade announcements too?

Just spotted a big spike in the SP... Unsure if it's just HL platform messing around or maybe another trance of Drahi's stake being transferred to Bharti? Or possibly another big buyer getting involved?

I think CPI could see 19.5p-20.5p today

Fair point there luckyinvestor and does seem basher has loyally held their BT investment so far too...