Join our community of smart investors

Why BT’s extravagant spending plans are good for shareholders

The dividend might not be coming back until next year, but investment in the future is a good thing
Why BT’s extravagant spending plans are good for shareholders
  • BT has announced an extension to its full-fibre roll-out schedule and is now aiming to target 80 per cent of the population by 2026 
  • Capital expenditure is rising but revenue and profits should follow in the long-term 
  • Management has suggested that the dividend will be resumed at the end of the current financial year (March 2022)

When residents of rural Yorkshire get super-fast fibre internet connectivity in 2026 - many years earlier than they may have previously expected - they can thank the government’s super deduction. It is the 130 per cent rebate on capital expenditure which has given BT (BT.A) the ability to expand its full fibre rollout from 20m to 25m homes and fund it from its own coffers - “as long that spending is in the interest of the shareholders,” chief executive Philip Jansen hastened to add when speaking on the Today programme. 

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in