Bt Share Discussion Threads

[spendalot] 13/5/2020 17:39

Bearing in mind we already know there are going to be issue's with the economy, I'm surprised this news wasn't already factored in the share price, any excuse to thieve from investors

[orinocor] 13/5/2020 17:11

MoronHedge

[montyhedge] 13/5/2020 17:08

Charts are useless, never heard of a rich chartist.

[amaretto1] 13/5/2020 16:54

Looking like 90p ..On the historic charts

[r9505571] 13/5/2020 16:46

Brutal day. Will bottom at 100p

[boix] 13/5/2020 16:18

Will 80p long term support hold?

[eodfire] 13/5/2020 11:55

Had a chat with a friend today who works for EE and he said that he has been informed that BT group are currently managing to operate at 80% productivity. Sounds ok to me considering the current climate.

[diku] 13/5/2020 09:03

monty...under Moodys review you have been demoted to no;2...all is not lost...you will be able to regain no;1 position in due course...

[milliethedog] 13/5/2020 08:35

A good day to buy for swing traders.
Am still waiting for £1 here.....

[montyhedge] 13/5/2020 08:24

Prudent to cut the dividend, 850,000 small shareholders not happy of course. But your get it back in shareprice growth. 200p + 12 to 18 months time. No point looking at shareprice day to day, if your an investor. Traders like me, no.1 who trade stocks daily we have to.

[colonelgrim] 12/5/2020 19:36

...come on lads, play nicely :@)

[montyhedge] 12/5/2020 17:42

Is that the best you can do, lol

[diku] 12/5/2020 10:10

monty no;2...you da man always...

[ekuuleus] 12/5/2020 09:57

Good point NY boy.

[montyhedge] 12/5/2020 08:21

BT seen has a growth stock now. I reckon boys back near 200p in 12-16 months time.Outrageous to say but possible.

[amaretto1] 12/5/2020 07:08

Vod results good Divi in tact

[ny boy] 11/5/2020 22:52

Ekuuleus

Stop being so damn optimistic 😂

[davidbennett] 11/5/2020 22:30

Fitch Ratings: BT Dividend Cut Lifts Pressure; Cashflow Remains Constrained
11 May 2020 15:45
(The following statement was released by the rating agency)

Fitch Ratings-London-May 11: BT Group plc's dividend cut should alleviate short- to medium-term leverage pressures and fund both BT's increased deployment of fibre to the UK and its next phase of restructuring. The cut was essential to sustain BT's 'BBB' rating and Stable Outlook, Fitch Ratings says, and is in line with Fitch's expectations that measures would be taken to support the balance sheet if needed.

The cut is also vital in preserving BT's medium-term competitive capability as BT enters the second step of its restructure and has increased fibre-to-the-premises (FttP) capex. However, the sizeable restructuring and transformation costs and increased capex spending will keep free cash flow constrained and leave little headroom in the rating over the next three to four years.

In its full-year results for its financial year ending March 2020 (FY20), BT announced its halt in dividend payments and rebase of future payments, its increased fibre deployment plans, with a target to reach 20 million premises by mid- to late-2020s, and its aim of delivering GBP2 billion gross of cost reductions a year by FY25 through the next phase of its transformation, which will have a one-time cumulative cost of GBP1.3 billion.

BT aims to achieve the GBP2 billion cost reduction through simplifying its product portfolio, automating and digitising key workflow processes, and reducing its IT and network layers. The company competes with operators that do not have the same extent of legacy infrastructure as BT. These legacy systems and products weigh down BT's cost structure and reduce its agility in responding to market changes.

During this time, BT will have little opportunity for execution error and will remain exposed to potential significant increases in pension deficit payments. The extent of BT's credit risks and the vulnerability of the ratings will depend on a combination of factors, including the pace at which cost savings from restructuring are achieved, the extent to which these savings can be retained or required to offset top-line pressure, the uptake of fibre by wholesale and retail customers, and the competitive impact of alternative FttP deployments in the UK.

Prior to the dividend cut, Fitch had expected that BT's leverage would exceed its 'BBB' rating downgrade thresholds from FY21. This reflected competitive, regulatory and legacy product pressures and the potential need for sizeable 5G mobile spectrum investments. The halting of dividend payments for 4Q20 and FY21 will save BT around GBP2.5 billion, which should mitigate immediate leverage pressures.

However, our initial base case forecasts also indicate that, to build greater headroom in the rating, BT will probably need to improve EBITDA margins and grow its top-line revenues. This implies saving some of the gross cost reductions the company makes from phase two of its restructuring and transformation programme. The company's first phase of restructuring that started about two years ago achieved GBP1.6 billion of gross cost savings, but this was also required to mitigate declines in EBITDA and increases in capex.

We believe that BT will be able to retain more of its cost savings from the next phase of restructuring and transformation as both the impact of incremental regulator-induced price decreases at Openreach and the revenue derived from legacy products will reduce in the next few years. Assuming no significant changes in competitive dynamics in the UK, and that other elements of its business remain broadly stable, the company's reduced cost structure should enable its fibre deployment to improve EBITDA margins in the medium-term. Fitch's base case forecast envisages an improvement of 1-1.5 pp over three years, accompanied by modest revenue growth.

BT's strategy to reduce its cost base, improve productivity, and increase investments in its local loop infrastructure is supportive of the company's medium-term operating and credit profile. BT's domestic retail broadband market share of about 35% is low compared to its western European peers, reflecting the highly competitive nature of the UK market. The lower retail share makes its wholesale broadband business important to group cash flow – Openreach accounted for 36% of adjusted EBITDA in FY20 – which has competition from alternative providers such as Virgin Media Inc. and Cityfibre. Increasing the pace and depth of BT's FttP deployment, supported by the dividend cuts, will help to maintain BT's competitiveness.

Contact:

Tajesh Tailor

Senior Director, Corporates

[phone]

Fitch Ratings Limited

30 North Colonnade

London E14 5GN

Alexandros Papageorgiou

Analyst

[phone] Media Relations: Adrian Simpson, London, Tel: [phone], Email: [e-mail].

Additional information is available on www.fitchratings.com

[ianood] 11/5/2020 20:25

isis - Correct, good point.