Publications

Format: Aug 2018
sort descending Sector(s) Date
BT Next Generation Access: a one billion pound toe in the water

BT’s announcement of a project to extend fibre beyond the exchange for some existing homes as well as newly built ones is good PR, a useful regulatory gambit, and offers the prospect of regaining some initiative from unbundlers and Virgin Media at the wholesale and retail levels respectively

  • Virgin Media
Telecoms, Fixed Line 14 July 2008
BT pre-quarterly results trading update: cost control issues at Global Services

On 31st October BT announced that Q2 EBITDA and EPS will be slightly below expectations as a result of a sharp deterioration in performance at Global Services (GS) and that GS CEO Francois Barrault has been replaced by erstwhile Group Finance Director Hanif Lalani

Fixed Line, Telecoms 31 October 2008
BT Q1 2010/11 results: strong cost control, but impact of government spending review remains uncertain

BT continues to improve its performance through cost reduction, with Global Services continuing to lead the way

Although a strike appears to have been averted, the next few quarters will be tougher due to increased EBITDA ‘re-investment’

Management is sticking to guidance which is, like the government, conservative in nature. Nonetheless, in our view, the forthcoming government spending review could still prove challenging

Telecoms, Fixed Line 2 August 2010
BT Q1 2011/12 results: marking time

BT reported another quarter of strong growth in broadband volume, helped by high competitor churn and accelerating take up of the Infinity high speed broadband service

But broadband volume growth did not feed through to financial performance at BT Retail, Global Services remained stuck in low gear and BT Wholesale performance weakened further

The company should make its guidance for the year to March, but evidence that it will do more than the minimum remains elusive

Fixed Line, Telecoms 2 August 2011
BT Q1 2013/14 results: Performance and prospects strong, BT Sport mainly defensive so far

BT’s underlying revenue growth of -1% in the June quarter was a slight dip from the March quarter, but remains very impressive compared to historic trends and international peers

BT Sport gained over 500k sign-ups, a pretty respectable figure in context, but so far it is looking mostly defensive, with any impact on broadband trends in the quarter indiscernible

Regulated cuts to copper pricing look like they will drop out completely from 2014/15, and BT’s DSL competitors are starting to push fibre more aggressively, both of which will give BT a very solid boost from 2014

Fixed Line, Telecoms 30 July 2013
BT Q1 2014/15 results: Solid Q1, but battles to come

BT had a solid Q1, with Group revenue growth still positive but slightly slowed by weakness in managed services and Global Services, and EBITDA flat in the last quarter before BT Sport costs fully annualise out

The consumer side had strong revenue growth, with accelerating volume growth and solid ARPU, although net subscriber additions were relatively subdued in a quarter that was seasonally quiet

The next quarter will likely be a noisier one, with promotions ramping up as the new football season launches, and both BT and Sky positioning themselves ahead of the next Premier League auction

Fixed Line, Telecoms 4 August 2014
BT Q1 2015/16 results: Solid all round

BT had a solid all round Q1, with broadband share robust, fibre growth still strong, revenue growth bouncing up a little on the business side and cost control robust

BT Sport Europe launches this quarter, and will boost revenues but raise costs by more; we continue to believe that the extra net costs can easily be covered by group-wide costs savings to allow group EBITDA to continue growing over the full financial year

The broadband market is increasingly characterised by high headline pricing coupled with heavy promotional discounting, and BT’s early headline price rise scheduled for September continues this trend

Telecoms 3 August 2015
BT Q1 2016/17 results: Not shabby

BT Group’s revenue growth was roughly unchanged in the quarter at 0.4%, with continued strong consumer growth mitigated by regulated and structural challenges in the rest of the Group

Both broadband and superfast broadband adoption is slowing, but BT is compensating with improving market share for the former, and the prospect of further uplifts from ultrafast for the latter

Regulatory uncertainties are likely to continue to weigh, with the current Openreach debate to be closely followed by the not-exactly-unimportant issue of copper and fibre pricing/regulation from April 2017

  • EE
Fixed Line, Mobile, Telecoms 4 August 2016
BT Q1 2017/18 results: Back to growth (for now at least)

BT Group revenue returned to growth, at least temporarily, helped by overlapping price rises in consumer, one-off regulated price cuts on leased lines annualising out, and mobile handset sales improving

Regulatory news was unusually positive, with Openreach taking the initiative on FTTP, and BT winning an appeal against damaging leased line regulation, which may end up being significantly eased

BT continues to do well in consumer and struggle in business markets, with the ongoing deceleration in the consumer broadband market the main cloud on the horizon

 

  • EE
Fixed Line, Media, Mobile, Telecoms, UK Media 9 August 2017
BT Q1 2018/19 results: On target in the short term, making progress for the long term

BT’s Q1 results were fairly robust given a number of one-offs hitting in the quarter, with revenue growth of -2% in line with full year guidance, EBITDA growth of 1% ahead of plan, and a number of metrics looking promising

Openreach’s newly announced volume discount plans offer advantages in growing high and higher speed volumes, infrastructure competitiveness and regulatory pricing pressure, while giving up little in external revenue, a win-win-win for BT at least

Full-fibre regulation appears to be slowly moving towards more clarity, but is still far too unclear to justify an accelerated investment, with critical issues being ducked (for now) by government and Ofcom alike

  • EE
  • BT
Fixed Line, Media, Mobile, Telecoms 3 August 2018
BT Q2 2010/11 results: digging in

Group performance to September was affected by increased investment in fibre and other defensive measures, as expected

Despite strong retail broadband subscriber growth, the core business remains under siege. High speed broadband should – eventually – provide an effective defence, but not much more

The Global Services turnaround is continuing, and further progress at GS supported by improving stability in the rest of the group should enable new guidance to be met

Fixed Line, Telecoms 15 November 2010
BT Q2 2011/12 results: light before the dawn?

BT reported its eighth successive quarter of strong growth in broadband volume and is aiming to complete deployment of next generation access one year early, yet within existing capex guidance for the group

Progress at Global Services and BT Wholesale is continuing, but remains very gradual

We continue to expect guidance for the current financial year to be met, though not significantly exceeded. But broadband momentum and excellent cost control suggest the prospects for FY2012/13 are improving

Fixed Line, Telecoms 7 November 2011
BT Q2 2012/13 results: Revenue slows, cost cutting compensates

BT Group revenue growth disappointed at the reported level, dropping from -6% to -9%, but adjusting for a series of one-offs underlying growth only dropped from -3.2% to -3.6%, easily made up for by another quarter of strong cost reductions Broadband net adds were again a little weak, with weather-related repairs slowing new line installations, but BT’s share held up well, at least against its fellow DSL operators Fibre-based connections continued to grow and BT further accelerated its build-out plans, with this (and not TV) holding the key to stabilising ARPU and increasing wholesale revenue in the years ahead

Fixed Line, Telecoms, TV, Media 6 November 2012
BT Q2 2013/14 results: Gathering momentum

BT’s subscriber and revenue results continued to show strong progress, with its consumer business gathering momentum even excluding the direct impact of BT Sport

BT Sport had a discernible impact, but this was modest given the spend levels involved. However, the negative impact will only improve from this point, with BT sounding cautious about bidding for new rights

Fibre growth has at last started to accelerate at BT’s competitors, with the potential wholesale revenue from this truly game-changing for BT

Fixed Line, Telecoms, TV, Media 4 November 2013
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

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

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

  • EE
  • BT
Media, Mobile, Telecoms 3 November 2016
BT Q2 2017/18 results: Unresolved issues

BT Group revenue growth dipped to -1.5% from an instance of rare modest positive growth in the previous quarter, albeit mostly due to a predicted price timing effect in Consumer and revenue growth predictably going from bad to worse in Global Services

The bright spots were continued strong 4% revenue growth at EE, with an acceleration in mobile-related revenue also helping other divisions, and strong growth of 5% in external revenues at Openreach driven by accelerating fibre adoption by competitor customers

A number of very important regulatory/policy/legal issues remain unresolved, including 5G spectrum auction rules, leased line pricing, FTTC pricing and FTTP roll-out rules, but without a number of these going BT’s way the outlook remains tough for at least the next 18 months

  • EE
Fixed Line, Media, Mobile, Telecoms, TV, UK Media 10 November 2017
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

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

Fixed Line, Telecoms, Internet, Media 6 February 2012

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