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BT raises guidance despite profit dip

The telecoms giant has been squeezed by lower activity from business customers and the cancellation of live sporting events
BT raises guidance despite profit dip
  • Adjusted cash profits (Ebitda) dropped by 5 per cent in the six months to 30 September.
  • Despite ongoing Covid-19 pressure, the telecoms giant has increased its guidance for full year adjusted cash profits from £7.2bn-7.5bn to £7.3bn-7.5bn.
IC TIP: Hold at 108p

The Covid-19 pandemic has proved a double-edged sword for BT (BT.A). On the one hand, demand for its broadband services has increased as we all spend a lot more time at home. The number of customers signed up for its ‘fibre to the premises’ (FTTP) swelled from 86,000 to 598,000 between June and September. But that has been offset by lower activity from enterprise customers and the cancellation of sporting events hitting revenue from its broadcasting business, BT Sport. As such, the telecoms giant saw its adjusted cash profits (Ebitda) dip by 5 per cent in the six months to 30 September to £3.7bn.

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