Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Stock

BT Group shares fall as revenue drops, misses estimates

Investing.com — BT Group (LON:BT) shares fell over 5% on Thursday, following its Q2 results that posted ongoing weakness across key revenue-generating segments.

This decline was largely due to deteriorating performance within BT’s business unit and continued competitive pressures on broadband services, which weighed heavily on the group’s overall financials.

BT reported a 3.1% drop in revenue, falling to £5.086 billion— below analyst expectations of £5.217 billion.

While EBITDA saw a modest rise of 0.5%, cost-saving measures appeared to offset some of the revenue shortfalls.

The Business segment, however, posted a 6.8% drop in revenue compared to the previous quarter, mainly due to underperformance in non-UK assets and growing challenges in the corporate and public sectors.

“We are wary that competition in broadband will intensify (BT brand being retired in Consumer, introduction of One Touch Switching and low retail/wholesale pricing from altnets),” said analysts at UBS in a note.

UBS flagged several challenges facing BT’s core operations, including the gradual shift of clients like Sky and TalkTalk away from BT’s Openreach network—a trend that may further strain BT’s cash flow.

UBS analysts also mentioned the risk posed by alternative network providers who offer low retail and wholesale pricing, further eroding BT’s market share.

This negative forecast led UBS to adjust its revenue guidance downward, projecting a 1–2% contraction for BT, compared to its previous expectation of slight growth.

The broader context remains challenging for BT Group, with UBS projecting ongoing competition in broadband and warning of financial headwinds if major clients continue to seek out alternative providers.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com