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BT Group plc (BT) is a telecommunications services company that offers voice and data services. The companyâs services portfolio comprises managed networked IT services, fixed voice and data, mobility, television, connectivity, and broadband services. It also offers copper and fibre connections between exchanges and homes and businesses. BT caters large corporate firms, small and medium-sized enterprises, start-ups, wholesale customers, commercial premises, homes, and public sector organisations.
The company had proposed a final dividend of 10.78 pence per ordinary share and the full year payout remained unchanged at 15.4 pence as compared to the last year. The company also increased its investment target in deploying superfast fibre optics broadband from 3 million to 4 million households and businesses by March of the year 2021. The companyâs adjusted revenue stood at £23,459 million and was down by 1 per cent as compared to the last year. Adjusted EBITDA was £7,392 million and declined by 2 per cent, as the growth delivered by consumer business was offset by Openreachâs regulated price reductions and decreased enterprise business. Adjusted basic earnings per share declined by 6 per cent against the last year to 26.3 pence and. As on 31st March 2019, net debt surged by 15 per cent from the last year to £11,035 million.
Share Price Performance
Daily Chart as at May-10-19, before the market close (Source: Thomson Reuters)
On 10th May 2019, at the time of writing (before the market close, GMT 9:16 AM), BT Group Plc shares were trading at GBX 210.15, down by 0.28 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 268.60/GBX 194.74. The outstanding market capitalisation was around £20.72 billion with a dividend yield of 7.38 per cent.
The stock was trading around 21.7 per cent below the 52w high price level and around 7.9 per cent higher against the 52w low price level. From the volume standpoint, stockâs 5-day daily average volume traded on the LSE was around 55 per cent above the 30-day daily average volume traded on the stock exchange.
The companyâs stock beta was 0.76, reflecting lower volatility as compared to the benchmark index. On the valuation front, the stock was trading at a trailing twelve months PE multiple of 8.1x as compared to the industry median of 17.3x.
The results delivered by the company with respect to revenue and earnings were in line with the management expectations. The EBITDA and EPS were short of the forecasted figures. As per the FY19/20 guidance, the adjusted revenue is expected to fall by 2 per cent. Adjusted EBITDA will be in between £7.2bn - £7.3 billion and the capital expenditure plan to be in the range of £3.7bn - £3.9bn Also, as per the companyâs guidance, the free cash flow (normalised) will be in between £1.9bn - £2.1bn.
As per the Philip Jansen (Chief Executive Officer), the company is well positioned to face the challenges and competition in the UK market, but they had lot of pending work to do to remain positive and deliver long term growth to the shareholders. The company is planning to extend the FTTP target to reach 15 million premises by the mid-2020s.
