By Adria Calatayud

 

BT Group PLC reported results for the second quarter and first half of fiscal 2021 on Thursday. Here's what you need to know:

 

ADJUSTED REVENUE: The U.K. telecommunications company said adjusted revenue for the quarter to Sept. 30 was 5.36 billion pounds ($6.96 billion), down 7.3% on year. This was slightly below analysts' expectations of GBP5.39 billion, according to consensus estimates provided by the company.

 

ADJUSTED EBITDA: BT's adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred profit metric, which strips out exceptional and other one-off items--for the quarter came in at GBP1.91 billion, down from GBP1.97 billion a year before but beating consensus expectations of GBP1.81 billion.

 

WHAT WE WATCHED:

 

-MEDIUM-TERM GUIDANCE: BT said it expects an adjusted Ebitda of at least GBP7.9 billion in fiscal 2023 and sustainable growth from that level going forward. This guidance is ahead of current consensus forecasts of GBP7.60 billion. BT said the continued recovery from the coronavirus pandemic, enhanced sales of its converged and growth products and significant savings under its modernization plan will drive earnings growth.

 

-COVID-19 IMPACT: The company blamed its first-half sales decline on the impact of the coronavirus pandemic, and said it reduced BT Sport revenue and led to slower business activity in its enterprise unit. Analysts at Bank of America Global Research said coronavirus-related contract delays at the company's global services unit were the main reason behind BT's slight revenue miss in the second quarter.

 

-5G, FIBER ROLLOUT PLANS: BT said its full-fiber broadband rollout reached record levels in the second quarter, and that it has already passed 3.5 million premises. Its 5G deployment also continues apace, with 5G networks now live in 112 towns and cities and the company said its 5G-ready customer base now exceeds 1 million.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

October 29, 2020 09:04 ET (13:04 GMT)

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