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BT: maintains profit outlook despite revenue weakness

Revenue guidance at BT has been ticked down a touch at the half year mark as the Business unit continues to struggle.
BT - on track for full year

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BT has reported a 2.7% drop in first-half revenue to £10.1bn. Falling revenue from the Consumer and Business divisions (weighted to the latter) were somewhat offset by growth at Openreach, which benefitted from higher average prices.

Underlying cash profit (EBITDA) rose 1% to £4.1bn, with the dip in revenue more than offset by cost initiatives. Underlying free cash flow rose 57% to £0.7bn, and net debt was £20.3bn at the end of the period.

Full-year revenue is now expected to fall 1-2% (previously flat). There was no change to guidance for underlying cash profit of around £8.2bn or underlying free cash flow of around £1.5bn.

An interim dividend of 2.40p was announced.

The shares fell 3.9% in early trading.

Our view

HL view to follow.

BT key facts

All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.

This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.
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Written by
Matt-Britzman
Matt Britzman
Senior Equity Analyst

Matt is an Equity Analyst on the share research team, providing up-to-date research and analysis on individual companies and wider sectors.

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Article history
Published: 7th November 2024