Shares in BT Group (LON:BT.A) have jumped in London this morning as the former telecoms monopoly reported that its profit had climbed in the first quarter of its financial year. The company, however, suffered a dip in revenue during the reported period.
As of 08:55 BST, BT’s share price had added four percent to 233.85p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally into positive territory and currently standing 0.18 percent higher at 7,676.75 points.
BT posts first-quarter results
BT reported in a statement this morning that its profit before tax had climbed to £704 million on an IFRS 15 basis in the quarter ended June 30, from £418 million at IAS 18 in the prior-year period. The group’s revenue, however, dipped from £5.84 billion to £5.72 billion. The company reported normalised free cash flow of £507 million down nine percent, mainly on the back of increased cash capital expenditure.
“We’ve made a good start to the year. We are making positive progress against our strategy,” the group’s outgoing chief executive Gavin Patterson commented in the statement, adding that the telco’s outlook for the year remained unchanged.
Analysts weigh in on update
“It has been a much slower burn but if you look at BT’s share price over the last few years it is down 50 per cent and that tells you a lot about the state of the company I think,” City A.M. quoted Laith Khalaf, senior analyst at Hargreaves Lansdown, as telling the BBC. “And the fact is we haven't got a chief executive at the moment, even though we’re embarking on a restructuring, we haven’t got a chief executive and that makes it a bit rudderless.”