Broadband firms set for nearly £1.5 billion windfall: Stocks to consider

September 07, 2022 01:07 PM BST | By Abhishek Sharma
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  • UK's top broadband providers are set to benefit from a £1.4 billion windfall when they raise their prices next year.
  • Many internet providers in the country hiked their prices by the CPI in January and added 3.9%.

With inflation set to rise significantly in the last quarter of this year, Brits are set to face a major squeeze on their pockets. The Bank of England has projected that inflation will reach 13.3% in the last three months, while several experts have claimed it may hit as much as 22%.

These inflationary pressures will trouble British households, but several companies are set to benefit from the windfall. UK's broadband providers, for example, are set for a nearly £1.5 billion windfall after they raise their prices in the new year, per an analysis from broadband provider Hyperoptic. The research showed that about 60% of people are unaware that their monthly charges for the broadband contract will change.

Many internet providers in the country hike their prices by the CPI in January and add 3.9% to it.

Image source: © Pearljamfan75 |

Several broadband providers in the UK raised their charges by the rate of inflation measured by the consumer prices index (CPI) in January and an additional 3.9% over it.

Other than broadband, the contracts for mobile phones are also set to go up next year, meaning that people will have to pay significantly more to stay connected.

Amid this, Kalkine Media® explores three key broadband services stocks.

Vodafone Group Plc (LON: VOD)

Vodafone is one of the leading telecommunication companies and offers mobile and broadband services in several countries. Last month, it sold its mobile operations in Hungary to local company 4iG and a state-backed firm. Vodafone holds a market cap of £31,454.19 million and has an EPS of 0.07. Over the past 52 weeks, its share value has dipped by more than 8%. Meanwhile, the YTD returns of the VOD stood in negative territory at 0.55%. The shares were trading at GBX 111.66, down 1.34% as of 12:25 pm GMT+1 on 7 September.

BT Group Plc (LON: BT.A)

BT Group is the UK's biggest mobile and broadband services provider. With a market cap of £14,114.28 million, it is a constituent of the FTSE 100 index. The company's 12-month return is in the negative zone at -14.39%, but the EPS is in positive territory at 0.13. Shares of BT Group traded at GBX 141.05, down 0.77% as of 12:30 pm GMT+1 on 7 September.

Bigblu Broadband PLC (LON: BBB)

The British telecom company provides broadband services to rural homes and businesses outside the fibre footprint using alternative technologies like satellites. Its current market cap is £29.88 million, and the EPS is 0.17. BBB’s YTD stood in negative territory at -27.53%. The stock was trading 0.59% higher at GBX 51.50 as of 12:33 pm GMT+1 on Wednesday.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


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