BT share price heads south ahead of interim results

Update to come after new CEO appointment

BT share price heads south ahead of interim results

Shares in BT Group (LON:BT.A) have fallen deep into the red in today’s session, ahead of telco’s second-quarter results due out tomorrow. The update will come after the former telecoms monopoly recently appointed a successor to outgoing chief executive Gavin Patterson who is leaving company following investor backlash.

As of 14:30 GMT, BT’s share price had given up 2.26 percent to 238.15p, underperforming the broader market rally which has seen the benchmark FTSE 100 index trade 1.68 percent higher at 7,154.13 points. The group’s shares have given up about 8.5 percent of their value over the past year, as compared with about a 4.7-percent loss in the Footsie.

BT to post results tomorrow

BT is scheduled to update investors on its performance tomorrow and IG reports that the telco’s first-half figures are expected to show a 1.3-percent drop  in earnings per share, while revenue is expected to have fallen 2.2 percent to  £11.53 billion.

“The incoming chief executive officer (CEO) will arrive too late to stamp much of his new style on the company, but it does promise a much-needed overhaul,” IG’s market analyst Chris Beauchamp commented in a note, adding that “increasing regulation, pension deficit contributions and ongoing spending on 5G and full-fibre connections mean that costs will keep rising”. 

Proactive Investors meanwhile reports that on the operational front, investors will be looking for updates in the half-year results on the company’s BT Plus package, which launched in May, and its 4G Assure service, which automatically switches business customers over to 4G if their fixed broadband service is interrupted.

Analyst ratings update

Deutsche Bank reaffirmed BT as a ‘hold’ today, without specifying a price target on the shares. According to MarketBeat, the former telecoms monopoly currently has a consensus ‘hold’ rating and an average price target of 273.13p.

As of 15:00 GMT, Wednesday, 31 October, BT Group plc share price is 238.50p.

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