BT Group Shares Fall After 1Q Revenue Misses Expectations -- Update

By Adria Calatayud

Shares in BT Group PLC fell Thursday after the company reported a drop in pretax profit for the first quarter of fiscal 2022 on revenue that missed analysts' expectations, but reiterated its guidance for the full year.

The British telecommunications group said pretax profit for the three months to June 30 was 536 million pounds ($745.2 million) compared with GBP561 million for the same period last year. Analysts expected BT to report pretax profit of GBP480 million, according to a consensus provided by the company.

Adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred profit metric, which strips out exceptional and other one-off items--for the quarter rose to GBP1.87 billion from GBP1.81 billion a year before. Analysts had forecast an adjusted Ebitda of GBP1.81 billion, according to a company-provided consensus.

Revenue for the quarter fell to GBP5.07 billion from GBP5.25 billion. Adjusted revenue was down 3.4% at GBP5.07 billion, missing consensus expectations of GBP5.15 billion.

BT attributed the revenue fall to declines in its corporate and public-sector segment and in global services, which offset growth in its consumer division and Openreach infrastructure arm.

Shares at 0716 GMT were down 4.8% at 175.20 pence.

However, the company reiterated its outlook for fiscal 2022, having previously guided for adjusted revenue to be broadly flat and for adjusted Ebitda to come in at between GBP7.5 billion and GBP7.7 billion.

"With trading conditions expected to see some improvement through the year, we have confirmed our outlook and remain confident that BT is on a path to growth," Chief Executive Philip Jansen said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

July 29, 2021 03:41 ET (07:41 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.