- BT Group has announced a pay increase of £1,500, the largest hike by the group in the last 20 years.
- The pay rise consists of £1,000 in direct cash and £500 in the form of shares and is expected to benefit nearly 58,000 employees.
- For the nine months ended 31 December 2021, BT reported total group revenue of £15,676 million.
UK-based leading telecommunication and network service provider BT Group Plc (LON: BT. A), has announced a pay raise for all its frontline workers, including those working in subsidiary businesses like Openreach, Plusnet, and EE.
The company, which offers fixed voice, mobile, broadband, and a range of other services in over 180 countries, has announced a pay increase of £1,500, the largest hike by the group in the last 20 years. The pay rise consists of £1,000 in direct cash and £500 in the form of shares and is expected to benefit nearly 58,000 employees. The new hike represents an 8% rise for workers who earn less than £20,000 and will come into effect from 1 April 2022.
However, the company’s Union rejected the new pay hike citing the high inflation rate in the country. The Communication Workers Union has reportedly rejected the offer of £1,200 previously, and the company’s management is in discussion with Union to reach a solution.
(Data Source: Refinitiv)
9-month business update
The company continues to report upbeat business performance. For the nine months ended 31 December 2021, the company reported total group revenue of £15,676 million, with a revival in cash flow across all business segments.
BT’s adjusted EBITDA for the reported period was at £5,708 million, while profit before tax dropped by 3% to £1,537 million. The company’s fibre optics business reported a 37% growth in connections in the wholesale segment, while its 5G business is also growing gradually and now covers 40% of the UK population.
In February 2022, BT Group announced that it had entered into an exclusive discussion with Discovery, Inc to offer new sports and entrainment content for customers in the UK. The new 50-50 joint venture will allow people to access exclusive content provided by the Discovery+ app and BT Sports. The new company is expected to be operational in the second half of 2022.
Recent stock performance
(Image Source: Refinitiv)
The company’s stock has performed well in 2022, giving investors an 11.79% year-to-date return. BT Group Plc’s current market cap stands at £18,706 million as of 8 April 2022, while its current dividend yield is 4.2%.