BT share price little changed ahead of quarterly results

on Jan 30, 2019
Updated: Jun 14, 2024

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Shares in BT Group (LON:BT.A) have been little changed in London in today’s session, ahead of the telco’s third-quarter update tomorrow. The results will come as outgoing chief executive Gavin Patterson prepares to hand over the reins to Philip Jansen.

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As of 10:11 GMT, BT’s share price had climbed 0.28 percent higher to 234.95p. The shares are underperforming the broader UK market rally with the benchmark FTSE 100 index currently standing 0.97 percent higher at 6,900.53 points.

Lower earnings expected at BT

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BT is scheduled to update investors on its third-quarter performance tomorrow and Proactive Investors reports that consensus estimate for earnings (EBITDA) is £1.82 billion, down from £1.94 billion a year ago, while revenue is forecast to have fallen 2.3 percent to £5.93 billion.

“To note, as the basis for the weakness of headline financials are; 1) tough Q3 comps 2) highly competitive UK fixed broadband market 3) new and lower wholesale pricing at Openreach 4) restructuring at Global Services,” analysts at UBS pointed out, as quoted by Proactive Investors.

New CEO to take over this week

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The results will mark the end of Gavin Patterson’s tenure as CEO of the former telecoms monopoly, with Philip Jansen to take over on February 1. Joshua Warner, market analyst at IG, commented in a note that Jansen’s “priority will be convincing investors that he has the ability and, more importantly, the freedom to turn the business around”.

The analyst notes that while Jansen has vowed to “pursue the right technology investments to help grow the business,” the “subsequent slide in BT’s share price in the wake of his appointment suggests he has much more to do to convince shareholders he’s the man to get the company back on track”.

As of 10:53 GMT, Wednesday, 30 January, BT Group plc share price is 234.95p.

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