BT Group (LON: BT. A): Should you buy shares of telecom major now?

November 30, 2021 05:49 PM AEDT | By Sreenivas D Ajankar

BT Group (LON: BT. A): Should you buy shares of telecom major now? — Image source: issaro prakalung, shutterstock.com

Half-Yearly Earnings

For the six months ended 30 September 2021, the company reported a revenue of £10,305 million, while its profit before tax was £1,009 million. Its adjusted EBITDA was at 3,748 million, while basic earnings per share were at 10.2p per share. The company’s 5G ready consumer base improved to 5.2 million, while the fibre-optic business Openreach reported a client base of six million and revenue of £2,707 million. The company’s long term FTTP national pricing offer received a good response from its clients, and around ten communication service providers had already signed up for the offer. Backed by the good performance of all business divisions, the company declared an interim dividend of 2.31p per share for its shareholders.

Gross annualised savings

In its previous earnings announcement, the company had set a target to save £1 billion by March 2023. However, the company achieved the target 18 months ahead of the deadline reporting a gross annualised savings of £1 billion. In addition, the company has brought forward its £2 billion gross savings target to FY2024 from FY25. Also, the company has brought forward its net-zero emission target. It aims to make its operations carbon emission-free by 2030.

Earlier, the media group reported that the BT Group Plc board may consider selling a stake in the fibre-optic business division, Openreach, to the potential private investors. Also, there are reports of potential takeover offer by the billionaire telecom investor Patrick Drahi, who already owns a 12.1% stake in the company and will be able to raise his stake further after the 11 December lock-in period is over.

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