Publications

Format: Oct 2017
Leave blank for all. Otherwise, the first selected term will be the default instead of "Any".
Leave blank for all. Otherwise, the first selected term will be the default instead of "Any".
sort descending Sector(s) Date
BT Q2 2014/15 results: Competition bites, but BT is resilient

BT faced a more intense battle in the broadband market in the September quarter, and lost some net adds share, but retained its #1 spot and is still growing well

Revenue growth fell at both the group and consumer level, but this was largely due to the BT Sport direct revenue benefit annualising out, with growth excluding this actually improving a touch

The flip side of this is that the negative cost impact is also annualising out, and cost reduction in the quarter looks weak in this context, but this is likely due more to discretionary spend on new products than a lack of costs to cut

  • BT
Fixed Line, Telecoms 4 November 2014
BT Q2 2015/16 results: Sport distorts, but underlying results strong

The launch of BT Sport Europe pushed up BT’s revenue and pushed down EBITDA in its Q2 results, but underlying revenue growth was strong across all divisions and cost control continued, with the company well on track for its full year guidance

BT Sport itself is being executed well, both in terms of viewers and direct revenue earned, but is not having a discernable impact on broadband figures, nor a game-changing impact on BT’s modest pay TV base, despite its very considerable net cost

On the regulatory side, BT has secured a strong result with the EE merger being provisionally approved without remedies, but debates over the future of Openreach continue, with the related issue of ultrafast roll-out regulation of particular import

  • BT
Fixed Line, Telecoms 5 November 2015
BT Q2 2016/17 results: Strong results, but regulation weighs

BT had a strong quarter for revenue growth, improving to over 1%. This was helped by some temporary factors, but underlying trends look nonetheless strong across the board

Network development looks strong, with G.fast pilot pricing announced and development on track, selective FTTP builds gaining momentum, and mobile coverage and speed capabilities accelerating

Despite this, or perhaps because of it, the regulatory outlook is as murky as ever, with Openreach’s future structure still not resolved, spectrum auction rules still to-be-decided, and rulings on copper and fibre pricing from April 2017 heavily delayed

  • BT
Media, Mobile, Telecoms 3 November 2016
BT Q3 2010/11 results: BTGS on the level; fibre investment continues to impact group

BT Global Services is generating cash ahead of schedule and the company’s strategy for defending the core business is gaining traction

Group performance continues to be affected by increased capital expenditure due to investment in next generation access

The company is on track to meet guidance, although prospects for further upside remain limited

  • BT
Fixed Line, Telecoms 7 February 2011
BT Q3 2011/12 results: reasonable progress, on balance

BT’s results for the December quarter saw continuing trends of gradual improvement at BT Retail and efficient deployment of next generation access at Openreach, plus strong control of unallocated property costs, enabling management to issue slightly improved group-level guidance for the current financial year to March

Cash flow growth at group level continued to be compromised by the cost of overseas expansion at Global Services and a continuing shift to LLU and IP-based services at BT Wholesale

Improved guidance suggests that progress at Retail and Openreach is sufficiently strong to generate positive, if modest growth in cash flow at group level, despite the slower pace of improvement at other divisions and a challenging economic environment

  • BT
Fixed Line, Telecoms, Internet, Media 6 February 2012
BT Q3 2012/13 results: Fibre take-up accelerates, but sports costs loom

BT had a very solid quarter, with revenue growth improving, broadband subscriber net additions bouncing back, ARPU robust and cost control still strong

Fibre net adds were particularly impressive, with take-up accelerating from an already high level, with this perhaps now starting to help stabilise ARPU

Progress on TV has been more mixed, with plenty of costs being added but no deals having been made yet to help offset this with revenue

  • BT
Fixed Line, Telecoms 5 February 2013
BT Q3 2013/14 results: Solid performance but no thanks to Sport

BT grew both its Group level and consumer retail revenue for the first time in years, and while the extent of growth was flattered by one-off factors, growth is still positive on an underlying basis, an impressive achievement indeed for a European fixed incumbent

This is mainly driven by robust pricing, declining line losses, and continuing fibre adoption, with the indirect impact of BT Sport still hard to discern, but the direct impact absorbing all of BT’s hard won cost reduction gains to leave EBITDA flat

The outlook is positive in that BT can achieve its current financial guidance even with the millstone of BT Sport costs, but the uncertain outcome of the next Premier League rights auction casts a shadow on prospects thereafter

  • BT
Fixed Line, Telecoms 3 February 2014
BT Q3 2014/15 results: Fibre evolves

BT Group revenue growth dropped to -1%, but entirely due to one-off factors, with its consumer division accelerating underlying growth and roughly maintaining broadband net adds share

Fibre net adds had a record quarter, driven by growth at Sky/TalkTalk et al, and BT is trialing the next generation of high speed broadband which could sustain profitable wholesale revenue growth for years to come

Upcoming developments over consolidation, quad play and sport rights are likely to continue to dominate the headlines, but it is growing capacity demand and BT’s ability to meet this that will drive BT’s long term value

  • BT
Fixed Line, Telecoms 3 February 2015
BT Q3 2015/16 results: Fibre-driven accelerating revenue

BT Group’s revenue growth accelerated to 4.7% in Q3; while this was helped by some beneficial one-offs, including the TalkTalk cyber-attack, the underlying trends also looked strong across all divisions

Fibre adoption had a record quarter, with growth particularly apparent at BT’s DSL competitors, helping to drive Openreach’s external revenue growth to 7%

BT completed the purchase of EE at the end of January, and BT will keep EE separate for consumer but fully integrate for business. We are sceptical of consumer-side revenue synergies, but the business side and cost synergies will significantly benefit going forward

  • BT
Fixed Line, Telecoms 5 February 2016
BT Q3 2016/17 results: Strong core, let down elsewhere

BT had a solid enough quarter, with revenue and EBITDA growth dipping due to pre-warned temporary factors, consumer continuing to outgrow business, and very solid operating trends evident, especially in high speed broadband and mobile

This has of course been entirely overshadowed by the profit warning, with prospective weaknesses in UK public sector and international corporate of far more concern than the contained, albeit surprising, accounting irregularities in Italy

BT has a large share of revenue and a much smaller share of profit from corporate/government data network/IT services, which are erratic in nature and arguably in long term decline in their current form, and without major changes they will continue to be so

  • BT
  • EE
Fixed Line, Non-UK Media, Non-UK Telecoms, Media, Mobile, Non UK Media, Technology, Telecoms, TV, UK Media 1 February 2017
BT Q4 2010/11 results: guidance met but fundamental outlook unexciting

BT met its full year guidance for the second year running, but new guidance reflects the weak revenue outlook and limited potential for further cost reduction

Group performance continues to hinge on capex levels, in particular deployment of next generation access, scheduled to continue until 2015

BT is not a financial basket case doomed to be eaten alive by mobile, satellite, cable or internet-based alternatives. But nor does it look like a huge growth story

  • BT
Fixed Line, Telecoms 15 May 2011
BT Q4 2012/13 results: Revenue very strong, costs to be hit by Sport

BT’s underlying revenue growth improved from -3% last quarter to around zero at both the Retail and Group level, its best performance for years, with high speed broadband helping to stabilise ARPU

BT Sport is positioned well as a defensive/win-back product against broadband losses to Sky, but BT’s ability to win triple play subscriptions off Sky is still hampered by lack of content, and the cost appears disproportionate to its aims

Fibre adoption continued to accelerate, with some important upcoming regulatory decisions the only potential barrier to fibre giving BT a very strong boost over the next few years

  • BT
Telecoms, Fixed Line 14 May 2013
BT Q4 2013/14 results: Impressive revenue, Sport holds back profit

BT had a solid Q4, with a continuing improvement in BT Consumer metrics and revenue growth the highlight, mitigated by weaknesses at BT Business and Wholesale

Overall Group revenue growth was positive again at 1%, and EBITDA growth of 2% would have been much higher had it not been for the impact of BT Sport

Despite revenue growth now being firmly positive, BT has only nudged up its guidance for 2014/15 and 2015/16, with the costs of BT Sport broadly counteracting progress with cost cutting

  • BT
Fixed Line, Telecoms 13 May 2014
BT Q4 2014/15 results: Revenue a bit weak, fibre great

BT had a somewhat mixed March quarter, with growth in consumer still strong but weaker than before, growth in UK corporate weak and even weaker than before, but fibre growth re-accelerating and cost-cutting very strong

The company is still well on track, with 2015/16 revenue guidance reflecting fibre-driven consumer growth countered by UK corporate weakness, and EBITDA guidance reflecting strong cost-cutting partially mitigated by extra football rights costs

Operationally the next few months will likely be dominated by the launch of BT’s Champions League coverage and associated marketing, with various regulatory processes keeping the company busy at the strategic level

  • BT
Fixed Line, Telecoms 19 May 2015
BT Q4 2015-16 results: Sound investment-driven growth strategy

BT Group’s revenue growth slipped back to 1.3% in Q4, but this reflected the reversal of various one-off boosts in the previous quarter, with underlying trends still solid across the group, with Consumer and Openreach still the standout performers

We do not think that BT’s approach of keeping the BT and EE consumer brands separate will maximize the cross-selling opportunity, but we consider this opportunity to be modest at best in any case, and therefore not worth the risk of a disruptive integration

On both fixed and mobile, BT is using cost savings to invest in faster speeds, better coverage and improved service to drive competitive advantage and price premia, a very sound strategy in our view

  • BT
  • EE
Fixed Line, Telecoms 13 May 2016
BT Q4 2016/17 results: Mobile strength, pressure elsewhere

BT had a reasonable quarter in its consumer broadband business given market pressures, and a very strong one at EE with continued growth acceleration. It had a good quarter for fibre adoption as well, helping its wholesale divisions stabilise their revenue, but business/IT was weak as expected

Regulatory pressure remains intense despite the (welcome) Openreach agreement, with price cap regulation proposed or due on a range of products, and a regulatory approach which is far from investment-orientated

Pressures in the business/IT market are likely to continue, and pressures in the consumer broadband market are likely to intensify, justifying BT’s current cautious approach to guidance and dividends

  • BT
  • Liberty Global
  • Ofcom
  • Sky
  • TalkTalk
  • Vice Media
Fixed Line, Internet, Media, Mobile, Technology, Telecoms, UK Media 9 June 2017
BT Q4 and full year 2011/12 results: workmanlike

Continuing strong cost control enabled BT to meet its annual guidance for the third year running Underlying cash flow growth continues to be compromised by the impact of LLU and IP on BT Wholesale, with fibre deployment providing only limited defence BT is proving adept at survival in a hostile environment, but further gains will continue to be modest and hard won

  • BT
Fixed Line, Telecoms 14 May 2012
BT Retail 40 Mbit/s broadband: priced to sell

BT Retail has announced its intention to launch residential
40 Mbit/s broadband at similar price points to its existing two higher tier
broadband offers. While this looks unlikely on its own to create significant
additional shareholder value, it could eventually help BT retain existing value

The move is unlikely to seriously inconvenience other
players for the next year or so, but could encourage TTG and Sky to sign
wholesale deals with BT for higher speed broadband and, ultimately, make it
more likely that a demerged TTG is acquired by another player

BT Retail’s strategy is likely to accelerate the
implementation of state-backed rural NGA in the UK since end user demand
outside commercially viable areas will be greater than would otherwise have
been the case

  • TalkTalk
  • Sky
  • BT
Fixed Line, Telecoms 22 January 2010
BT Retail residential telephony price changes: rebalancing act

BT Retail is putting through another round of residential price changes, trading further aggressive cuts in call plans in return for 12 month contracts, increases in line rental and some volume-related call charges

The £1 line rental increase is in line with our expectations and could trigger a round of increases by other players following Ofcom’s forthcoming statement on Openreach’s wholesale price ceilings

The price changes should help BT Retail to both defend its residential customer base and conserve ARPU. However, some further loss of residential market share looks inevitable

  • BT
Telecoms, Fixed Line 11 February 2009
BT Retail telephony pricing: ringing the changes

BT Retail’s fixed-line telephony packages are now amongst the most attractive in the market following a third price change in two years. Attractive headline prices have been balanced by less obvious price rises elsewhere

  • BT
Telecoms, Fixed Line 11 March 2008

Pages