BT Group (LON:BT.A) Issues Quarterly Earnings Results

BT Group (LON:BT.A) released its quarterly earnings results on Thursday. The communications services company reported GBX 9.70 earnings per share (EPS) for the quarter, Digital Look Earnings reports. BT Group had a net margin of 4.11% and a return on equity of 6.33%. The firm had revenue of GBX 875.30 billion for the quarter.

Here are the key takeaways from BT Group’s conference call:

• BT reported 1% growth in first-half revenue and EBITDA and reiterated its guidance, including around £2 billion of normalized free cash flow in FY2027 and £3 billion by FY2030. First-half normalized free cash flow was £236 million, however, reflecting timing-related headwinds that management expects to ease.
• Openreach connected its 10 millionth full-fibre customer and passed more than 24 million premises, with connections setting a record and broadband line losses 11% lower year over year. Openreach EBITDA rose 4%, supported by growth and lower costs.
• Transformation delivered £312 million of annualized gross savings in the half and £1.7 billion cumulatively, alongside an 11% reduction in total labor resource. BT also migrated 1.1 million customers from the legacy PSTN network, with about 1 million remaining before the January 2027 deadline.
• Performance was uneven across customer-facing businesses: Consumer EBITDA fell 1% and Business EBITDA fell 7%, with voice migration, legacy-product declines and brand investment weighing on results. BT expects Business to improve in the second half and said Consumer EBITDA should be broadly flat for the full year.
• BT expects the TalkTalk acquisition to cost around £400 million in FY2027, excluding it from current-year guidance while regulatory review continues. Separately, the company agreed a pension funding plan that is expected to reduce the deficit to about £300 million after bond issuance, while BT also plans a Verizon joint venture for its international operations.

BT Group Stock Up 0.1%

Shares of LON:BT.A traded up GBX 0.20 during midday trading on Thursday, reaching GBX 231.80. The company had a trading volume of 2,147,000,000 shares, compared to its average volume of 48,939,121. The stock has a market capitalization of £22.84 billion, a P/E ratio of 21.46, a PEG ratio of 0.38 and a beta of 0.69. The stock’s fifty day moving average price is GBX 203.90 and its 200-day moving average price is GBX 205.40. The company has a debt-to-equity ratio of 187.58, a current ratio of 0.89 and a quick ratio of 0.83. BT Group has a one year low of GBX 173 and a one year high of GBX 247.30.

Trending Headlines about BT Group

Here are the key news stories impacting BT Group this week:

• Positive Sentiment: BT reported a 12% increase in half-year pretax profit to £1.07 billion, with second-quarter results topping forecasts. It raised its interim dividend and maintained its outlook. BT Group reports half-year results Second-quarter results top forecast
• Positive Sentiment: The pension deficit narrowed, and record fibre take-up was cited as supporting earnings. BT shares were reported at eight-year highs. Dividend and pension update Record fibre take-up
• Positive Sentiment: Berenberg reaffirmed its buy rating and set a GBX 300 price target, implying further upside from the reported trading level. Berenberg rating
• Neutral Sentiment: BT cut more than 11,000 jobs over the past year. The reductions may aid cost savings, though the reports do not specify their financial impact. BT job cuts
• Negative Sentiment: Openreach is expected to miss its target of passing 25 million premises with fibre by year-end, although BT expects to reach the milestone in March. The delay highlights some rollout execution risk. Openreach fibre rollout delay

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on BT.A shares. Citigroup lowered their target price on BT Group from GBX 175 to GBX 165 and set a “sell” rating for the company in a research note on Monday, August 3rd. Berenberg Bank reiterated a “buy” rating and issued a GBX 300 price target on shares of BT Group in a research note on Thursday. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat, BT Group has a consensus rating of “Hold” and an average target price of GBX 231.25.

About BT Group

BT Group is the UK’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services.

BT Group consists of four customer-facing units: Consumer serves individuals and families in the UK; Business covers companies and public services in the UK; International serves multinational organisations headquartered outside the UK and overseas public sector customers; Openreach is an independently governed, wholly owned subsidiary wholesaling fixed access infrastructure services to its customers – over 700 communications providers across the UK.
British Telecommunications Limited is a wholly owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group.