Bt Share Discussion Threads

[sarkasm] 15/5/2022 08:36

THE MOTELY FOOL


3 reasons to buy – and not buy – BT Group shares

The BT Group share price has a rock-bottom valuation right now. Is this a red flag or does it make the FTSE 100 firm too cheap to miss?
Royston Wild❯
Published 15 May, 8:18 am BST


The BT Group (LSE: BT-A) share price proved ultra-resilient during the market volatility of last week.





Yet on paper, BT’s share price still looks ultra cheap. The telecoms giant trades on a forward price-to-earnings (P/E) ratio of 8.5 times, comfortably inside bargain territory of 10 times and less. Meanwhile BT’s dividend yield sits at a healthy 4.4% for 2022.


Reasons to be cheerful

Some stocks command ultra-low valuations because of their weak earnings prospects.

However, there are reasons why BT (and by extension its share price) could have a very bright future.

These include:

#1: EE rebranding. BT is taking steps to rejuvenate its disappointing consumer division by rebadging products there under its EE mobile brand. This could be a masterstroke given the popularity and acclaim that EE commands. It won the uSwitch award for ‘fastest mobile network’ for the third year running in 2022.

#2: An improved sports product. Last week BT sealed the deal on a 50:50 joint venture with broadcasting colossus Warner Bros. Discovery. The deal will create a pay-TV sport powerhouse, adding events like the Olympics to BT’s portfolio that might significantly boost subscriptions.

#3: Huge infrastructure investment. BT’s heavy investment infrastructure could pay off handsomely as Britain digitises its economy. The FTSE 100 firm is spending £15bn to roll its fibre network out to 25m homes by 2025, up from a prior target of 20m. It is also taking steps to roll out 5G across the whole of the UK by 2028.


Why I worry for BT’s share price

But right now these factors aren’t enough to tempt me to buy BT shares. I’m still worried about the company and its share price for several reasons, including:

#1: The impact of Britain’s cooling economy. BT’s revenues are highly sensitive to broader economic conditions. It therefore faces extreme near-term pressure as consumer spending declines and businesses struggle to make ends meet. Britain’s economy contracted 0.1% in March after flatlining in February and rising 0.7% in January.

#2: Colossal competition. The cost of living crisis is made even worse for BT given the massive competition it faces. Customers are likely to be increasingly shopping around for a better deal in the months ahead. What’s more, BT’s Openreach division faces a fight to fend off Virgin Media O2’s entry into the infrastructure business.

#3: Massive debt levels. There’s also no getting away from the fact that BT’s balance sheet remains pretty unnerving. Net debt continues to rise and it breached £18bn in the first quarter of 2022. This casts a shadow over the company’s growth plans and its ability to keep paying big dividends to its shareholders.

[rathkum] 14/5/2022 11:39

UAE'S ETISALAT BUYS 9.8% STAKE IN VODAFONE GROUP PLC FOR $4.4B

[eaaxs06] 13/5/2022 17:11

The figures yesterday mentioned that the pension deficit was down from £5.1b last year, to £1.1b by the end of March 22, a £4b improvement.

I presume that includes the £500m payment that BT made in March. They are due to make another payment of £400m in July this year. Imagine how profits will increase when they stop making those payments.


It just shows how higher inflation and bond yields can change things around very quickly.

Good luck everyone, have a great weekend.

[netcurtains] 13/5/2022 16:39

P11 Investors Chronicle this week by Madeline Taylor talking about how higher Bond Yields are reducing Pension Fund Deficits for companies

[netcurtains] 13/5/2022 14:23

Be great to break ONE HUNDRED AND EIGHTY...

(three treble twenties)

[dope007] 12/5/2022 10:24

I think these results again show BT to be a very promising investment on a longer term time horizon. They are dominant and cementing that dominance with a rapid build out.

This ongoing crisis will only help BT as smaller competition like in the energy sector get demolished.

I will definitely be adding more on funds dumping due to the general mkt panic, margin calls etc, etc

[dope007] 12/5/2022 08:38

Happy with those results

[clive205] 12/5/2022 08:32

Also news of a deal to offload BT Sport, in return for an initial £93M plus a £540M earn-out fee.



Mr market seems to like everything it's heard.

[waldron] 12/5/2022 08:13

12/05/2022 7:53am
Dow Jones News




Thursday 12 May 2022
.

By Kyle Morris



BT Group PLC said Thursday that pretax profit for fiscal 2022 rose as revenue slightly fell, and that it has finalized the sports joint venture with Warner Bros. Discovery.

The U.K. telecommunications group said pretax profit for fiscal 2022 ended March 31 was 1.96 billion pounds ($2.40 billion) compared with GBP1.80 billion for fiscal 2021.

Revenue was GBP20.85 billion compared with GBP21.33 billion a year earlier, reflecting a decline in enterprise and global.

BT said it is extending the cost savings target of GBP2 billion by the end of fiscal 2024 to GBP2.5 billion by the end of fiscal 2025.

For fiscal 2023, the company sees adjusted revenue to grow year-on-year and adjusted Ebitda of at least GBP7.9 billion.

The company declared a final dividend of 5.39 pence a share, bringing the full-year payout to 7.70 pence a share.



Write to Kyle Morris at [e-mail]



(END) Dow Jones Newswires

May 12, 2022 02:38 ET (06:38 GMT)

[holly1000] 12/5/2022 08:06

Miracles do happen beating going up on results day!!

[fhmktg] 12/5/2022 07:48

Re-instated full year dividend was expected, but nevertheless underpins BT credibility.

[tornado12] 12/5/2022 07:24

Results ;
www.bt.com/about/investors/financial-reporting-and-news/results-events-and-financial-calendar/2021-22#fy22-results

[adrian j boris] 10/5/2022 11:41

Trappy2
5 May '22 - 11:30 - 438 of 438
0 1 0



Next results 12 May 2022

almost there



2022 Key Dates to follow

Q1 ~ 28 July
Q2 ~ 3 November

[dope007] 10/5/2022 09:03

Picked some up in the ISA

[jubberjim] 09/5/2022 07:25

Awaiting impatiently until Thursday until deciding which way to jump

Either this or Vodafone

attaching bungee cord as we speak just hoping it will take the weight else I could be underwater very quickly

[dope007] 08/5/2022 16:49

Yup, but with my wife being Ex BT it's good for us :)

Be nice if this went sub 170p so I can add to my ISA for the long term as I do think BT will do well over the next 5 - 10 years

[ianood] 07/5/2022 23:24

Dope007 - Only in the event of default.

[dope007] 07/5/2022 11:43

BT pension scheme is also 100% backstopped by the UK taxpayer as part of the privatisation

[waldron] 06/5/2022 19:57

BT Pension Scheme deficit falls on back of recovery plan

By Tom Higgins | October 8, 2021

On the go: The BT Pension Scheme deficit is expected to have improved by roughly £3.4bn over the year to June 2021 to around £4.6bn, due to sponsor contributions and strong returns on growth assets.

According to the scheme’s annual report and accounts, these preliminary figures — which will make part of an actuarial assessment to be published later in the year — compare with a funding deficit of £7.98bn as of June 2020 when the last triennial valuation took place.

The report stated that the reduction in the deficit was primarily due to contributions paid by BT, including an asset-backed funding arrangement of £1.66bn. Higher-than-expected returns on the scheme’s growth assets also contributed to the deficit reduction.

Under a recovery plan agreement, BT will pay additional contributions in the expectation of returning the scheme to a fully funded position by June 2030.

BT made deficit contributions of £500m, £1.66bn and £400m in March 2021, May 2021 and June 2021 respectively, with further contributions of £500m due in March 2022 and June 2023, and £400m due in June 2022 and March 2023.

The deficit repair plan, announced in May as part of BTPS’s triennial valuation, is secured against the company’s EE business.

BT Pension Scheme Management chief executive Morten Nilsson said: “With this reduction in deficit, the agreed contingent contributions should we fall behind plan, and with the increased resilience in the investment strategy, we believe we have an enduring funding solution giving us greater confidence that the scheme’s objectives will be achieved.”

Over the past 12 months, the scheme’s equity-like assets produced a return of 14.4 per cent — above the expected return by 9.8 per cent. Over the past three years, the equity-like asset return was 7.2 per cent a year, which was ahead of expectations by 2.6 per cent a year.

The pension fund, which is one of the largest corporate pension schemes in the UK, has assets worth £57bn.

In May, it joined an investors group to create a tool to measure, monitor and compare sovereign bonds’ climate change governance and performance.

[netcurtains] 06/5/2022 19:46

Dope007: yawn

www.pensions-expert.com/DB-Derisking/BT-Pension-Scheme-deficit-falls-on-back-of-recovery-plan#:~:text=BT%20made%20deficit%20contributions%20of,June%202022%20and%20March%202023.

[dope007] 06/5/2022 19:40

High interest rates?

10% is high
15% like I had is very high
5% is ok'ish

1% is absurd and caused by politicians and central bankers who are utterly inept and a lot of people will suffer because of their own stupidity combined with the idiots at the BOE

[deanforester] 06/5/2022 19:33

You call 1% a high interest rate? The minimum used to be 2.5% and the long term average over 5%.