Latest news with #BTGOF
Yahoo
23-05-2025
- Business
- Yahoo
BT Group PLC (BTGOF) Full Year 2025 Earnings Call Highlights: Strong Cash Flow and Dividend ...
Normalized Free Cash Flow: GBP1.6 billion, better-than-expected performance. Total Dividend: Increased to 8.16p per share. Openreach Full Fiber Footprint: Over 18 million premises. Broadband ARPU Growth: Increased by 6%. Consumer Revenue: Down 1% for the year. Business Revenue: Down 4%, impacted by international trading and FX. Openreach Revenue Growth: 1% increase driven by CPI-linked price increases. Adjusted EBITDA: GBP8.2 billion, up 1%. CapEx: GBP4.9 billion, broadly flat year-on-year. Headcount Reduction: 4,000 reduction in total headcount. Cost Savings: GBP930 million of gross annualized cost savings achieved. Future CapEx Reduction: More than GBP1 billion reduction expected post-2026. Warning! GuruFocus has detected 11 Warning Signs with BTGOF. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BT Group PLC (BTGOF) achieved a record year in full fiber build and connections, reaching over 18 million premises. The company reported a better-than-expected GBP1.6 billion of normalized free cash flow, reflecting strong financial management. BT Group PLC (BTGOF) increased its dividend to 8.16p per share, demonstrating confidence in cash flow expansion. Openreach delivered growth in revenue and EBITDA, driven by CPI-linked price increases and increased FTTP mix. The company is accelerating its fiber build, aiming to pass up to 5 million homes in the coming year, enhancing its competitive position. BT Group PLC (BTGOF) faced revenue declines in consumer and business segments, with overall adjusted revenue down 2%. The fixed broadband market shrank slightly, creating a headwind for line losses, particularly in areas without full fiber. The company experienced ongoing drags from legacy products, impacting business revenue, which fell by 4%. Openreach's Q4 revenue growth was negatively impacted by the phasing of commercial and storm-related rebates. The company anticipates higher CapEx of around GBP5 billion in fiscal year '26 due to accelerated fiber build and provisioning. Q: Regarding your outlook, can you say what you have assumed regarding Altnet funding in that outlook? And with BT Consumer broadband lines growing, while Openreach is still losing lines, can you talk about the role of TalkTalk customer losses within that? A: Our outlook for line losses assumes no change in market dynamics from the last year, expecting line losses at the same rate as the second half. We assume Altnet funding will continue, and our CPs will compete at the same rate. One CP has not been investing to maintain their base, which has been a headwind. However, underlying momentum is strong, and shifts to Altnets are in line with predictions. We assume Altnets will continue to be funded, and CPs will perform as they have recently. We also expect market growth from increased fiber demand and government housebuilding initiatives, though these are not included in our base assumptions. Q: Can you dig into consumer a bit? What's changed recently in your approach to the market, and are you getting the same sort of intake ARPU and incurring the same acquisition costs? A: We've activated all three of our brands, which is proving successful. We were underweight in the value segment for broadband, but activating Plusnet protects BT and EE ARPUs. We're also adopting a more targeted regional approach, leveraging our brands and fiber availability to defend and grow our business. This strategy has been activated in recent months. Q: Could you give us an idea of what you think the overbuild of your 8 million fiber lines is with Virgin and the Altnets at the moment? And as you move forward, how do you think that overbuild develops for the next 5 million? A: We haven't seen a dramatic change in the overall Virgin Media footprint overlap. With the slowing of Nexfibre, we're able to compete better in the Virgin Media footprint. As for the next 5 million, we will be overbuilding in areas where Altnets already are due to demand for our fiber. Our accelerated build will cover a broader platform of Altnet footprint, strengthening our position. Q: In your answer to Karen's question, you mentioned Sky potentially selling through CityFibre. Does that mean you're assuming the impact from that this year will be modest? And do you see a need for an Equinox 3 pricing plan to retain volumes? A: Sky is trialing on the CityFibre network and will ramp up in their Q3. We assume some impact but expect to offset it with growth in other CPs and new areas where fiber hasn't been before. Regarding Equinox 3, we assume no equivalent before March '26 but are always looking at how to compete commercially. Q: There wasn't much in the Ofcom consultation on copper retirement. Do you think more around that would be helpful, particularly with retiring that sooner and getting customers off legacy? A: Yes, we're in dialogue with Ofcom about shifting the population to modern technologies. It's clear the benefits of getting off copper faster, and we're hopeful for progress, whether in the consultation or through other mechanisms. Q: How much would it cost per home to upgrade the Openreach network to XGS-PON, and could you give an update on the current cost to provision for Openreach? A: The current cost to provision for Openreach is GBP300 per premise. We haven't declared the extra cost for XGS-PON but will trial it and have it in our footprint to compete. Q: On consumer, you mentioned reactivating the BT brand. Has it cost more to get broadband positive consumer growth, and is that now a commitment? A: We aim to stabilize our base and grow market share using all three brands. Q4 EBITDA wasn't affected by reactivating BT. The tech we're building will support multiple brands, and we're investing in fiber take-up and call centers due to migrations. Q: With the cash flow inflection approaching, how are you thinking about capital allocation? Will this be relevant next year, or do you want a couple of years of better cash flow first? A: We're confident in delivering normalized cash flow targets, driven by reduced capital investment and EBITDA growth. We'll maintain a strong balance sheet while having capacity for enhanced shareholder returns. The focus is on achieving the significant capital reduction in FY27. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Business Insider
18-05-2025
- Business
- Business Insider
BT in discussions to sell 50% stake in TNT Sports to Warner Bros, FT reports
BT (BTGOF) is in advanced discussions to sell its 50% stake in TNT Sports to Warner Bros Discovery (WBD), Kieran Smith and Daniel Thomas of The Financial Times reports, citing people familiar with the situation. A deal could be announced as early as next week, but the timing could still slip depending on how negotiations progress, the journal's sources added. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
