BT Group Expects Fiber Investment to Put Pressure on Cash Flow -- Earnings Review
May 13 2021 - 9:05AM
Dow Jones News
By Adria Calatayud
BT Group PLC reported results for the fourth quarter and fiscal
2021 as a whole on Thursday. Here's what you need to know:
ADJUSTED REVENUE: The U.K. telecommunications group said
adjusted revenue for the quarter to March 31 was 5.29 billion
pounds ($7.43 billion), matching analysts' expectations. This
compared with revenue of GBP5.63 billion for the same period last
year.
ADJUSTED EBITDA: BT said adjusted earnings before interest,
taxes, depreciation and amortization --the company's preferred
metric, which strips out exceptional and other one-off items--for
the quarter were GBP1.81 billion, down 10% on year and slightly
below consensus expectations of GBP1.83 billion, according to a
consensus provided by the company.
WHAT WE WATCHED:
-FIBER INVESTMENT: BT said it plans to expand its
fiber-broadband network to 25 million homes and businesses by
December 2026, up from its previous target of 20 million premises
by the mid-to-late 2020s. However, the company said investments in
its fiber rollout will weigh on cash flow over the next few
years.
BT forecasts capital expenditure at GBP4.9 billion in fiscal
2022, higher than consensus expectations of GBP4.39 billion. The
company expects normalized free cash flow to be between GBP1.1
billion and GBP1.3 billion, below consensus expectations of GBP1.43
billion.
-DIVIDEND: The company didn't declare a dividend for fiscal
2021, as previously indicated, but said payments are expected to
resume in fiscal 2022 at an annual rate of 7.7 pence a share.
-BT SPORT: BT Chief Executive Philip Jansen said the company is
having constructive discussions with potential partners in relation
to BT Sport, but cautioned that a deal might not be reached.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
May 13, 2021 08:50 ET (12:50 GMT)
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