28th Jul 2022 17:45
(Alliance News) - BT Group PLC on Thursday posted an improved first-quarter top-line, though industrial action grabbed investor focus, with the telecommunications firm's workers hours away from striking.
Thousands of BT workers are to strike on Friday in a dispute over pay. It will be the first national telecommunications strike in 35 years, the Communication Workers Union said.
In addition, another strike will be held on Monday after union members voted in favour of industrial action in protest at a GBP1,500 pay rise.
"All eyes are on the BT strike tomorrow as inflation sparks a nationwide wave of industrial action for higher pay. Our experts say that inflating labour costs may force BT Group to slow down their full fibre network build," Third Bridge analyst Albie Amankona commented.
BT reported a first-quarter revenue climb, however.
Revenue for the three months to June 30 inched up 1% to GBP5.13 billion. This was "due to improved pricing and trading in Consumer and Openreach," BT said, offset to some extent by "challenging market conditions" hitting large corporate customers in Enterprise and Global.
Consumer is the FTSE 100 constituent's main retail arm. Openreach looks after copper wires and fibre cables used to connect homes and businesses across the UK to broadband and phone services.
"We continued to grow the number of BT and EE customers connected to our next generation networks. We're building our full fibre broadband network faster than ever and we're seeing record customer connections - both ahead of our own expectations. Openreach's full fibre network now reaches over 8 million homes and businesses across the UK and we anticipate increasing our annual build from 2.6 million premises last year to around 3.5 million this year," Chief Executive Philip Jansen commented.
"The modernisation of BT Group remains on track. We are delivering and notwithstanding the current economic uncertainty we remain confident in our outlook for this financial year."
The firm said it implemented price rises to support investment in the network and offset cost inflation.
BT shares ended 6.9% lower at 163.97 pence each in London on Thursday.
AJ Bell analyst Russ Mould commented: "Despite dialling up its first revenue growth in years the market effectively hung up on BT as the company faces up to industrial action on Friday and continues to confront problems in its business-to-business enterprise arm."
By Eric Cunha; [email protected]
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