7th Nov 2024 09:51
(Alliance News) - BT Group PLC on Thursday revealed it has lowered its revenue guidance for the full year following a challenging period of interim trading.
Shares in BT were down 5.5% at 134.25 pence on Thursday morning in London.
In the six months to September 30, the London-based multinational telecommunications company said its revenue fell 2.8% to GBP10.12 billion from GBP10.41 billion the prior year.
Pretax profit also suffered for the FTSE100-listed firm, down 10% on-year to GBP967 million from GBP1.08 billion.
BT said its trading in the first-half had been impacted by a competitive retail environment and a weaker performance in its non-UK operations.
Revenue guidance for the full-year was revised to down to between 1% and 2%, reflecting a softer public sector and corporate environment as well as weaker non-UK trading.
BT previously guided adjusted revenue growth of between 0% and 1% in financial year 2025.
However, it reiterated its full-year guidance for adjusted earnings before interest, tax, depreciation and amortisation of GBP8.2 billion, which for the first half rose 1% on-year to GBP4.13 billion from GBP4.09 billion.
The firm confirmed its capital expenditure guidance for the full-year of below GBP4.8 billion.
Normalised free cash flow guidance of approximately GBP1.5 billion was also reiterated for the full-year.
Despite the weaker trading performance but inline with its progressive dividend policy of paying 30% of the prior full-year dividend, BT lifted its interim dividend by 4% on-year to 2.40p from 2.31p.
The firm also revealed that it had cut 2,000 jobs, or 4% on-year throughout the period, with its workforce decreasing to 118,000 as part of an ongoing cost transformation overhaul.
BT Chief Executive Allison Kirkby said: "We have accelerated the modernisation of BT Group in the first half of the year. We've ramped up our full fibre build and connections, seen further improvements in customer satisfaction, and our cost transformation contributed to growth in Ebitda and normalised free cash flow despite revenue declines driven by our non-UK operations and a competitive retail environment.
"We are confirming our Ebitda, capex and cash flow guidance for financial year 2025, albeit on lower revenue guidance. We remain firmly on track to meet our long-term cost savings and cash flow targets, and today announce an interim dividend of 2.40pps.
"The accelerated modernisation of our operations, combined with a focus on connecting the UK, puts us in a strong position to generate significant value for all our stakeholders."
By Christopher Ward, Alliance News reporter
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