BT’s Share Price Soars in London as Profit Beats Expectations

on May 10, 2013

On Friday, May 10 BT Group (LON:BT.A, NYSE:BT) announced results for the fourth quarter and the financial year to March 31 with quarterly profit coming ahead of analyst expectations. Following the release of the results, the share price of the UK’s biggest fixed-line operator surged by nearly nine percent at the start of London trading on May 10.

**Q4 Profit Beats Analyst Estimates**
BT’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were up four percent on the year at £1.67 billion in the quarter ended March 31, above an average analyst forecast of £1.62 billion compiled by Bloomberg. Adjusted EBIDTA for the full year rose two percent to £6.18 billion, ahead of a consensus forecast of £6.1 billion of analysts surveyed by Reuters.

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Underlying revenue excluding “transit” sales from carrying competitors’ traffic on BT’s network was flat as compared with recent quarters. Analysts had expected BT’s revenues excluding transit to be lower by about three percent, the FT said last week. The company has also raised its full-year dividend payment by 14 percent.
BT said it had added 136,000 retail broadband customers in the quarter to end-March, as well as 211,000 retail fibre broadband customers. TV net additions had increased to 40,000 taking the customer base to 810,000.

BT Group’s share price surged 8.81 percent at 300.00p in early London trading on May 10.
**Strong Financial Outlook**
BT said on Friday it expected EBIDTA of £6.0 – £6.1 billion for the financial year 2013/14, noting that the company’s financial outlook remained strong despite significant strategic investments, particularly in the BT Sport channels.

!m[Broadband Demand Boosts Full-Year Results](/uploads/story/2186/thumbs/pic1_inline.png)
BT is expected to release three sports channels in August, with the service free for BT broadband subscribers. BT Sport will compete with free programming from the BBC and paid services offered by British Sky Broadcasting Group Plc (LON:BSY). The direct and aggressive challenge to Sky Sports’ long term stranglehold on premium sports offerings such as the English Premiership is what has caused the greatest stir.
**BT Group’s share price was 8.79 percent higher at 299.93p in London as of 8:31 BST on 10 May 2013. On the NYSE, BT Group’s share price closed 3.26 percent lower at $42.45 on May 9.**


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