Earnings Alerts

BT Group PLC (BT/A) Earnings: Adjusted Ebitda and Revenue Meet Estimates, Promising Mid-Term Growth

  • BT’s FY Adjusted Ebitda meets estimates with GBP8.1 billion, slightly under the estimate of GBP8.15 billion.
  • Adjusted revenue is GBP20.84 billion, marginally lower than the estimated GBP20.88 billion.
  • BT has issued a dividend per share of 8.0p.
  • Normalized free cash flow is greater than estimated with GBP1.28 billion, opposed to the predicted GBP1.18 billion.
  • Pretax profit stands at GBP1.19 billion, falling short of the GBP2 billion estimate.
  • The adjusted basic EPS is 18.5p, slightly lower than the 19.2p estimate.
  • Capital expenditure comes to GBP4.88 billion, under the GBP5 billion estimate.
  • The mid-term guidance suggests consistent and predictable adjusted revenue growth and EBITDA growth ahead of revenue.
  • Cost transformation is expected to occur from FY26 to FY30 which will enhance the revenue growth.
  • Capital expenditure excluding spectrum is expected to stay under £4.8bn until FY26, reducing by around £1bn after peak FTTP build.
  • Normalized free cash flow projected to reach approximately £2.0bn in FY27 and about £3.0bn by the end of the decade.
  • BT receives 17 buys, 3 holds, and 2 sells from financial analysts.

A look at BT Group PLC Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE3.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

BT Group PLC, a telecommunications company, seems to have a promising long-term outlook based on the Smartkarma Smart Scores. With top scores in both value and dividend factors, BT Group PLC appears to be well-positioned in terms of the attractiveness of its stock price and the consistency of its dividend payouts. Additionally, a solid score in growth suggests potential for expansion and profitability in the future. Despite lower scores in resilience and momentum, BT Group PLC‘s strong value and dividend indicators indicate a stable foundation for growth.

BT Group PLC provides a range of telecommunications services, including local and long-distance telephone call products, international calls, broadband network solutions, web hosting, and a variety of internet access services. While facing challenges in resilience and momentum, the company’s high scores in value and dividend highlight its potential to deliver long-term value to investors through consistent returns and growth opportunities.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Analytics and News
  • ✓ Events & Webinars