BT Group's 1Q Beat Overshadowed by Downbeat Guidance -- Earnings Review
31 Luglio 2020 - 2:41PM
Dow Jones News
By Adria Calatayud
BT Group PLC reported results for the first quarter of fiscal
2021 on Friday. Here's what you need to know:
REVENUE: The U.K. telecommunications company generated revenue
of 5.25 billion pounds ($6.87 billion), ahead of expectations of
GBP5.16 billion, according to a consensus provided by the company.
This was lower than the GBP5.63 billion reported for the
year-earlier period.
ADJUSTED EBITDA: BT's adjusted earnings before interest, taxes,
depreciation and amortization--the company's preferred metric,
which strips out exceptional and other one-off items--came in at
GBP1.81 billion, exceeding a company-provided consensus of GBP1.75
billion. In the same period last year, BT's adjusted Ebitda was
GBP1.96 billion.
WHAT WE WATCHED:
--GUIDANCE: BT surprised analysts by issuing guidance for the
year ending March 31, 2021 for the first time. The company said
adjusted revenue is expected to fall between 5% and 6%, and
adjusted Ebitda is forecast to decline to between GBP7.2 billion
and GBP7.5 billion. Current consensus expectations for adjusted
Ebitda sit at the top of the range given by the company, prompting
analysts at Citi to say BT's outlook was weaker than anticipated.
Shares at 1156 GMT traded 3.6% lower at 104 pence.
--CORONAVIRUS: BT attributed the first-quarter revenue decline
to the effects of the coronavirus pandemic. The company was hit by
lower BT Sport revenue and a fall in business activity in its
enterprise unit. BT also warned that the pandemic continues to
weigh on its consumer division and that it expects a further hit to
its enterprise unit in future quarters.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
July 31, 2020 08:26 ET (12:26 GMT)
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