The BT Group (LON: BT.A) share price plunged 9.95% after releasing its full-year results for the year to 31 March 2023. The company said it had grown its pro-forma revenue and EBITDA for the first time in six years, but the markets remained unconvinced, as evidenced by the decline in its share price.
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The multinational telecommunications company failed to convince investors that its latest financial results were much better than previous results. The company generated revenues worth £20.7bn, down 1%, with the growth in Openreach offset by the decline in other business units.
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The company noted that its offer of FTTP (Fibre to the Premises) had been connected to 702,000 new premises in the last quarter of the year at a build rate of 54,000 per week. The demand for FTTP was relatively high as part of the Openreach business.
However, the gains made by the Openreach business were negated by losses in other business units. Openreach FTTP orders for the 2023 year were up 70% yearly.
While the FTTP business was setting new records, the 5G business was not left behind, as the company had 8.6 million 5G connections, representing an increase of 62% compared to last year. As a result, BT Group’s 5G network now covers 68% of the UK population.
The company also highlighted the cost-saving program that has helped it save about £2.1 billion since April 2020 and is on track to hit its £3 billion target. The company also merged its Enterprise and Global division into one unit to enhance value for all its B2B customers.
BT Group’s CEO Philip Jansen said: “We have delivered our outlook for FY23: this year, we've grown both pro forma revenue and EBITDA for the first time in six years while navigating an extraordinary macro-economic backdrop. Over the last four years, we have stuck firmly to our strategy, and it's working. Openreach is competing strongly, and it's clear that customers love full fibre. The Openreach Board has reaffirmed its target to reach 25 million premises with FTTP by the end of 2026 and plans to further accelerate take-up on the network.”
*This is not investment advice.
BT Group share price.
The BT Group share price fell 9.95% to trade at 133.37p, from Wednesday’s closing price of 148.10p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.