Menu
Equities Services

BT share price: Telco to scrap US listing

Share this article!

BT Group (LON:BT) has moved to scrap its listing on the New York Stock Exchange as it looks to trim costs, the former telecoms monopoly has said. The update comes after the blue-chip telco recently posted its first-quarter results, revealing a fall in revenue and profits.

BT’s share price has fallen deep into the red in London this Wednesday, having given up 2.01 percent to 168.62p as of 14:40 BST. The stock is underperforming the broader market selloff which has seen the benchmark FTSE 100 index give up 1.31 percent to 7,155.93 points so far today. The telco’s shares have given up just under a quarter of their value over the past year, as compared with about a six-percent drop in the Footsie.

BT to scrap US listing

BT announced in a statement today that it intended to delist its American Depositary Shares (ADS) from the New York Stock Exchange and terminate its American Depositary Receipt (ADR) programme. The company explained that its decision was “aimed at reducing reporting costs and complexity whilst maintaining the highest standards of corporate governance and transparent financial reporting”.

The delisting is set to become effective following the close of the market in New York on 13 September 2019, from which time BT’s ADSs will no longer be traded on the NYSE.

BT said that ADR programme comprises about two percent of its shares in issue, while investors based in North America hold about 20 percent of the group’s shares in issue.

GS upbeat on telco

Goldman Sachs reaffirmed the former telecoms monopoly as a ‘buy’ yesterday, with a target of 265p on the BT share price. Proactive Investors quoted the analysts as commenting that they saw an “improving regulatory framework facilitating returns on fibre investment over the medium term,” with the update from regulator Ofcom at the turn of the calendar year a catalyst for BT, “as higher capex to date has essentially been written off by the market”.

Add Comment

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.