RE: FT article on alt-nets3 Feb 2023 00:50
its build efforts, once the construction phase ends he hopes the company will generate “a lot more cash” and could increase the dividend offered to shareholders.
“BT was on the back foot five years ago, we’re unquestionably on the front foot now,” he added. “Investors who own the company need a return.”
BT maintained its full-year outlook on Thursday as it posted third-quarter revenue and earnings in line with analysts’ expectations.
Revenue fell 3 per cent in the third quarter compared with the same period in the previous year, to £5.2bn, which it attributed in part to lower sales in its global division and a loss of income from BT Sport following the completion of a joint venture with Warner Bros Discovery.
Adjusted earnings before interest, tax, depreciation and amortisation increased 2 per cent to £2bn, due in part to price rises and the removal of costs associated with BT Sport.
In November BT announced that it would increase its cost-savings target by £500mn to £3bn by 2025 as it sought to mitigate higher energy and inflation costs. As part of the cost-cutting drive, Jansen said there would be fewer people working at BT over the next five years, although he refused to be drawn on numbers.
BT has already reduced its net headcount by 2,000 over the past two years, despite significant recruitment at Openreach.
It has pushed ahead with inflation-linked price rises in 2023 for the majority of its consumer and wholesale customers in spite of cross-party calls for telecoms companies to reverse the decision during a cost of living crisis.
“Right now the [capital expenditure] has to be paid for somehow,” Jansen said. “Hopefully inflation comes down and it won’t be so painful for everyone.”
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