BT lifts lower end of guidance range; H1 profit falls on pandemic hit

Thu, 29th Oct 2020

Telecoms giant BT raised its guidance after first-half profit fell by a fifth as revenue was hurt by the pandemic-led reduction in BT Sport revenue and business activity. The company raised the lower end of the adjusted EBITDA outlook range for 2020/21 to £7.3bn, with a range £7.3bn to £7.5bn expected. 'This performance has given us confidence to raise the lower end of our EBITDA outlook range for this year and publish an EBITDA expectation of at least £7.9bn for 2022/23, with sustainable growth from this level forward,' the company said. For the half year to 30 September 2020, pre-tax profit fell 20% to £1,062m, driven as revenue fell 8% to £10,590m year-on-year. The consumer segment, which accounted for nearly half of revenue, saw a 6% decline, and the enterprise segment fell 9%, while the Openreach segment was up 2%. Looking ahead, the company said growth will be 'driven by the continued recovery from Covid-19, enhanced by sales of our converged and growth products, and by significant savings from our modernisation and cost saving programme.' The company said it planned to reinstate dividends next year. Story provided by StockMarketWire.com

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