Shares in BT Group (LON:BT.A) have lost ground in London in today’s session as the former telecoms monopoly revealed a fall in revenue for the third quarter of its financial year. The update comes about a year following an accounting scandal at the group’s Italian division which has pressured the group’s performance.
As of 08:39 GMT, BT’s share price had given up 2.70 percent to 249.10p. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.03 percent lower at 7,488.52 points.
BT posts fall in Q3 revenue
BT reported in a statement this morning that its revenue had dipped three percent to £5.97 billion in the three months ended December 31, and one percent to £17.76 in the first nine months of its financial year. The telco’s third-quarter profit, however, came in 25 percent higher at £660 million, while dropping nine percent to £1.74 billion on a nine-month basis.
“We are delivering against our strategy, capitalising on opportunities and responding to market challenges with a robust set of actions,” the group’s chief executive Gavin Patterson commented in the statement.
Full-year outlook reiterated
Going forward, BT, whose performance has been weighed down by the Italian accounting scandal and regulatory pressure on its Openreach division, reassured investors that it was on track to meet its full-year targets.
Reuters noted in its coverage of the news that while the company’s outlook for the full year sees broadly flat underlying revenue and core earnings falling to between £7.5 billion and £7.6 billion, analysts doubt it can meet its earnings target though, predicting they will come in below that range at £7.475 billion, according to Thomson Reuters data.
Today’s update comes after Openreach unveiled plans yesterday to introduce ‘ultrafast’ Internet connections to three million premises by the end of the decade.