Bt Share Discussion Threads

[pacemaker1000] 26/1/2017 21:48

Moody's very timed announcement. Too well timed?
Something beginning to smell and murdoch will be very happy. Deutsche Bank suddenly positive?
Even if results good tomorrow I think we could go down. Some big player pulling the strings.
Grassy knoll time 😀

[diku] 26/1/2017 21:33

Think if there is a bounce then it goes upto 320p & sellers come out again..

[spoole5] 26/1/2017 21:16

Think tomorrow will be all about the results and the mobile broadband and consumer business. Are they performing strongly enough to get some sort of bounce out of the shares.

[redartbmud] 26/1/2017 21:06

I know that it will not happen, but wouldn't it be good if the share price rose tomorrow, to the levels pre-Italian announcement. What would the smart lawyers do then?
Undoubtedly they would claim that their clients sold multi trillions of shares at a big loss, and the corrupt US Courts would still enforce the claims.
Just a hypothesis.

[smurfy2001] 26/1/2017 21:06

BT scandal joins VW and Tesco in crosshairs of shareholder legal action specialists

[smurfy2001] 26/1/2017 21:02

Fears over BT debt pile as ratings agency warns of negative outlook in wake of accounting scandal

BT is at risk of having its credit rating cut over fears that the heavy blow to profits from its accounting scandal in Italy and a slump in big contracts will slow effort to reduce its debt pile.

The ratings agency Moody’s has changed its outlook on BT from stable to negative in the wake of the company’s profit warning earlier this week.

A negative outlook indicates that BT is in danger of losing its Baa1 rating, considered a lower-medium investment grade. Lower credit ratings make it more expensive for companies to borrow as lenders view them as riskier.

Moody’s said BT, which is due to issue its third quarter financial update tomorrow, was already more indebted than it would normally allow for a Baa1 rating.

The agency said it had maintained the rating on expectations of improving underlying profits, which have taken a £400m hit for this year and next as a result of improper account in Italy and slowing corporate and public sector business.

At its last financial update BT’s net debt stood at £9.6bn. The company also bears the weight of a multi billion-pound deficit in its pension fund, the UK’s largest private retirement pot. At the last count in October the deficit was £11.5bn, up from £7.6bn in June. BT has agreed to make massive top-up payments over the next few years.

Moody’s analyst Laura Perez said: "Changing BT's outlook to negative reflects the company's weaker expectations for operating performance over the medium term, which further weighs on BT's financial profile from an already stretched level for the Baa1 rating, following the surge in the company's reported pension deficit in the first half of 2016.”

"The profit warning will further delay the deleveraging that we had anticipated.”

BT’s debts are now expected to be 3.5 times its underlying earnings this year and 3.4 times next year. The normal upper limit for a Baa1 rating is 2.8 times.

Moody’s added that the scandal in Italy, the result of improper sales, purchase, factoring and leasing transactions, showed BT had “less than adequate operational controls”.

The senior management of BT Italia left the company in autumn, before a forensic audit by KPMG revealed the full extent of the problems.

Prosecutors in Milan have launched a criminal investigation. PWC, BT’s auditor for more than 30 years, faces an accelerated review of its contract as the board attempt to uncover what went wrong.

BT sources confirmed the company is poised to appoint Andrea Giovanni Bono, current leader of its Swiss, Scandinavian and Russian businesses, to run BT Italia. The impending appointment was first reported by Bloomberg News.

[smurfy2001] 26/1/2017 21:01

A leading ratings agency has cut the outlook of telecoms giant BT after revealing its patience had run out.

On the eve of BT revealing its third quarter trading figures, Moody's changed the group's outlook from stable to negative.

The news comes as another blow to the FTSE 100 firm after it revealed on Tuesday a £530m accounting black hole in its Italian arm and issued a profit warning after poorer than expected trading from some of its core operations.

hxxp://www.cityam.com/257911/moodys-unable-tolerate-bts-weaker-operating-trading

[spoole5] 26/1/2017 20:40

Moodys downgrade stable to negative.

[glenkaz] 26/1/2017 20:37

Mr spoole! I'll take that tommorow £3.25 😋 What w/nkers they are! Tin hat in the bin! It's what to do with tommorows profit! 🤗💷

[philanderer] 26/1/2017 20:21

Citywire:


The only positive investors can draw upon is that BT's dividend appears intact, with the company reaffirming a commitment to growth of at least 10% in 2017 and 2018.

Should that result in dividends of 15.5p for this year and 17.1p in 2018, as per Berenberg estimates, it leaves the stock trading on respective yields of 5.1% and 5.7%.

That could attract new income investors to the stock and, according to Haitong analyst John Karidis, is one of the reasons why Tuesday's spectacular slide was an overreaction.

'Based on our experience of BT and our work on the company to date, we think management has chosen to reflect the causes of [Tuesday's] profit warning onto revised 2017 and 2018 guidance, but not the continuing good performance of other BT divisions,' he said. 'As ever, BT always errs heavily on the side of caution.'

[spoole5] 26/1/2017 20:19

Most recent deutsche bank rec i can find is from Jan 5th sell with 325 target.

[glenkaz] 26/1/2017 20:15

Any positive news and all negs out of the way watch the biggest rise you've ever seen! 8 billion wiped out for a poxy few mill! Tut tut tut! Each the panick buys come flooding in! Peeps love their divis! My reputation is on this now!! Buy buy buy! ....o you can't! See ya at 8% open! 🤗🍷 cheers

[excell1] 26/1/2017 20:11

Yep looks like it.That has got to be a first..

[pacemaker1000] 26/1/2017 19:32

Errr, is that a thumbs up from Deutsche Bank 😂

[glenkaz] 26/1/2017 19:26

£8 tomorow! 😋 Treble divi! Sleep well shorts! 😋

[montyhedge] 26/1/2017 18:51

DikuBig bounce 8am. Of course way oversold.

[spellbrook] 26/1/2017 18:48

On the corporate calendar, BT Group reports its third quarter results amid an accounting scandal at the telecoms giant‘s Italian business.
In October, the company revealed it discovered “inappropriate management behaviour” in its Italian division, which would cost £145m. On Tuesday the company said the cost was put at £530m.
The company warned full year profits would be £300m lower than previously expected, also due to international corporate clients cutting back after the Brexit vote and UK government departments reducing their spending.
Meanwhile, Italian prosecutors were opening their own investigation into BT Italia over claims of false accounting and embezzlement.
For the third quarter results, the consensus forecast is for a 1% increase in revenue to £6.13bn and a 4% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to £1.98bn with tough comparatives.
“We do not expect BT to change its fiscal year 2017 guidance of growth in underlying revenue (consensus 0 to +1%), EBITDA of £7.9bn (cons £7.87bn), and normalised free cash flow of £3.1-3.2bn (consensus £3.16bn),̶1; said Deutsche Bank.
“Overall - We see BT as a well-positioned converged operator, but are wary of regulatory and competitive pressures leading to downside risk to estimates. BT does not look expensive on c8% estimated FCF yield for 2017E on a calendarised basis (post pension payments).”

[diku] 26/1/2017 18:41

monty no:2...hope you bought here today...probably most bought share for PI's last 3 days...

[diku] 26/1/2017 18:34

Any chance Google interested here...

[spoole5] 26/1/2017 18:17

Cheers glenkaz. Tin hat at the ready!!

[luisfrg] 26/1/2017 18:13

ADRs doing better now, what do the states know that we didn't ?

[glenkaz] 26/1/2017 18:13

Gl mr spoole! Let's go 10% up! 😃

[spoole5] 26/1/2017 18:04

Because it's all guesswork!! Bought on the close today, 5% either way tomorrow. Which way anyone's guess!!