BT Group (BT.A)

[Breelander]

BT's initial assessment of revised policy on Huawei in 5G networks

In January, the Department for Digital, Culture, Media & Sport ("DCMS") proposed restrictions on the use of Huawei equipment in 5G and FTTP networks.

Today they have announced a revised set of proposals to remove Huawei equipment from 5G communication networks in the UK by the end of 2027, and consult on the future use of Huawei in FTTP networks.

In light of this, BT Group plc ("BT") announces its initial assessment of the financial impact of these revised proposals.

https://www.investegate.co.uk/bt-group- ... 03479996S/

[idpickering]

1st Quarter Results

Here; https://www.investegate.co.uk/bt-group- ... 00076862U/

Also;

Rob Shuter appointed CEO of BT's Enterprise unit

Here; https://www.investegate.co.uk/bt-group- ... 00146864U/

[Breelander]

Half Year report

https://www.investegate.co.uk/bt-group- ... 00085440D/

Financial:

• Revenue relatively resilient at £10,590m, down 8%, primarily due to the impact of Covid-19 including reduced BT Sport revenue and a reduction in business activity in our enterprise units, and declines in legacy products

• Adjusted2 EBITDA £3,721m, down 5%, driven by the fall in revenue, partly offset by sports rights rebates, savings from our modernisation programme and other cost initiatives including Covid-19 mitigating actions

• Reported profit before tax £1,062m, down 20%, driven primarily by reduced EBITDA

• Net cash inflow from operating activities £2,713m; normalised free cash flow2 £422m, down 30%, primarily due to reduced EBITDA and offsetting movements in working capital and timing of tax payments

• Capital expenditure £1,969m, up 5%, primarily driven by fixed and mobile network investment

• Lower end of the adjusted2 EBITDA outlook range for 2020/21 raised to £7.3bn; revised range £7.3bn - £7.5bn

• Adjusted2 EBITDA outlook of at least £7.9bn in 2022/23, underpins planned reinstated dividend from 2021/22 and value-creating investment plans

[dealtn]

Net Debt down £720m too.

[idpickering]

BT ESTABLISHES DIGITAL UNIT TO ACCELERATE, NEXT-GEN SERVICES FOR CUSTOMERS

BT today announced the creation of a new technology unit - Digital - to lead its digital innovation agenda, effective from 1 April 2021. The new unit will focus on the development and rapid delivery of innovative products, platforms and services in key areas such as healthcare and data.

https://www.investegate.co.uk/bt-group- ... 37162936L/

[torata]

BT ESTABLISHES DIGITAL UNIT TO ACCELERATE, NEXT-GEN SERVICES FOR CUSTOMERS

BT today announced the creation of a new technology unit - Digital - to lead its digital innovation agenda, effective from 1 April 2021. The new unit will focus on the development and rapid delivery of innovative products, platforms and services in key areas such as healthcare and data.

https://www.investegate.co.uk/bt-group- ... 37162936L/

Good to see they are ahead of the curve
Not one of my better picks.

torata

[idpickering]

BT ESTABLISHES DIGITAL UNIT TO ACCELERATE, NEXT-GEN SERVICES FOR CUSTOMERS

BT today announced the creation of a new technology unit - Digital - to lead its digital innovation agenda, effective from 1 April 2021. The new unit will focus on the development and rapid delivery of innovative products, platforms and services in key areas such as healthcare and data.

https://www.investegate.co.uk/bt-group- ... 37162936L/

Good to see they are ahead of the curve
Not one of my better picks.

torata

Likewise. I dropped my holdings in this lot some time ago, and have no intention of buying back into them any time soon.

Ian.

[daveh]

3rd qtr results are here:
https://www.investegate.co.uk/bt-group- ... 00029340N/

BT Group plc (BT.L) today announced its trading update for the nine months to 31 December 2020.

Key strategic developments:

• Creation of a new technology unit - Digital - to lead our digital innovation agenda from 1 April 2021; Digital will lead the IT, process and business transformation of BT and develop and deliver new growth products, platforms and services

• Sale agreed of selected business units in Italy

• Continued progress on our wider modernisation programme including the creation of a standalone procurement company

Operational:

• Openreach's FTTP network now reaches 4.1m premises, built at an average run rate of 42k premises passed per week in the quarter; remains on track to achieve 4.5m by March 2021

• Openreach's first copper stop-sell now live in Salisbury, extending to 2.2m premises by January 2022

• FTTP commercial offers extended; all of Openreach's major communications provider customers now selling FTTP with strong increase in sales in Q3; Openreach achieved record 17k FTTP orders per week

• 5G in 125 locations and 5G ready customer base now over 2.1m; EE has taken top spot in Rootmetrics' latest national results for the 15th consecutive time with 5G in more places than any other network according to Rootmetrics

• Consumer fixed ARPC down 5.8% year on year due to commitments to meet our fairness agenda, investment in our long term strategic base and declining voice usage; postpaid mobile ARPC down 6.9% year on year due to increased SIM-only mix, decline in roaming and out of bundle revenue

• In Consumer, BT brand at its highest NPS1 ever, as evidenced by strong BT sales and churn performance

• Enterprise retail and wholesale order intakes up 8% to £3.2bn and 5% to £1.2bn respectively on a 12-month rolling basis

• Global order intake up 1% to £4.1bn on a 12-month rolling basis

Financial:

• Revenue £16,058m, down 7% due primarily to the impact of Covid-19 on Consumer and our enterprise units, ongoing legacy product declines and divestments of domestic businesses in Spain, Latin America and France

• Adjusted1 EBITDA £5,603m, down 5%, driven by the fall in revenue, partially offset by H1 sports rights rebates, savings from our modernisation programme and other cost initiatives including Covid-19 mitigating actions

• Reported profit before tax £1,591m, down 17%, due to reduced EBITDA

• Normalised free cash flow1 £830m, down 17%, due to reduced EBITDA and higher cash capital expenditure, offset by a cash receipt from the monetisation of a non-strategic revenue stream generated from our building infrastructure and timing of tax payments

• Capital expenditure up 5% to £3,030m, primarily driven by increased fixed and mobile network investment

• Outlook for 2020/21: Unchanged except for lower end of normalised free cash flow1 outlook range raised to £1.3bn; revised range £1.3bn-£1.5bn; the EBITDA outlook range remains at £7.3bn-£7.5bn

[idpickering]

JAN DU PLESSIS TO RETIRE AS CHAIRMAN OF BT

BT Group plc ("BT" or the "Company") announces that Jan du Plessis has informed the Board of his intention to retire as Chairman of the Company in 2021 once a successor has been appointed.

Jan joined BT as a Non-Executive Director in June 2017 and was appointed Chairman in November 2017. The Board will now initiate a process for the appointment of a successor led by the Senior Independent Director.

Jan du Plessis, Chairman, said:

"BT has made good progress over the last few years. We have a refreshed Board and much-strengthened senior management team delivering on our strategy to transform the Company. We have made big strides in enhancing customer service and have really stepped up to support the country during the pandemic. Above all, our relationship with Ofcom has improved significantly over the last three years and I strongly believe the Board's commitment to invest in a full fibre network is in the long-term interests of all BT's stakeholders."

https://www.investegate.co.uk/bt-group- ... 00096061Q/

[dealtn]

A big boost to the share price of BT on the back of the Budget yesterday, with the news on the Super Deduction of Capital Allowance. BT has a huge roll out and investment programme concerning broadband and fibre and expected to be a big beneficiary as a result.

[idpickering]

BT Group statement re Sky News article

The Board of BT Group plc ("BT" or the "Company") notes the article from Sky News on Friday 5 March regarding the Company.

The Company announced on 1 March the intention of Jan du Plessis to retire as Chairman in 2021 once a successor has been appointed, and we are very sorry he will be leaving.

The Chairman throughout his tenure has demonstrated strong leadership of the Company, been extremely supportive of management and any suggestion that he has impeded the transformation of BT is without foundation.

There has been no misalignment between the Board and executive management over the Company's strategy.

https://www.investegate.co.uk/bt-group- ... 00154103R/

[daveh]

has just spent £452m on 5G spectrum

https://www.investegate.co.uk/bt-group- ... 15065413S/

Following the principal stage of Ofcom's 5G auction, EE has secured new 700MHz and 3.6-3.8 GHz spectrum.



Marc Allera, CEO Consumer said: "EE has secured vital new spectrum in this auction which, when rolled out into the network, will allow us to grow our position as the UK's number one 5G network. EE was first to launch 4G and 5G, and this auction outcome is great news for our network, our customers and BT."



Low band 700MHz spectrum is widely seen as crucial for reach and indoor coverage, providing a wider and better customer experience. Mid-range 3.6GHz spectrum will help deliver greater capacity and speed, both vital elements for the growing use cases associated with 5G technologies.



The Spectrum Auction now moves to a second stage, to work out where the acquired spectrum will be assigned within the band. The full commercial terms will only be finalised at the end of this assignment stage of the auction.

[idpickering]

BT confirms FTTP build plan to 20 million premises

Ofcom has this morning published its statement on the Wholesale Fixed Telecoms Market Review ("WFTMR") that sets out how Ofcom will regulate telecom fixed access services for the 5 years from 1 April 2021. A major focus of the statement sets out how Ofcom will stimulate next generation Fibre to the Premises ("FTTP") broadband investment across the UK.

Based on our initial assessment, BT believes that the document is broadly in line with the expectations laid out at our Q3 2020/21 financial results and, when taken as a whole, will allow BT to earn a fair return on its c.£12 billion FTTP investment. As a result, BT is today confirming its plan to build FTTP to 20 million premises by the mid- to late-2020s.

Philip Jansen, Chief Executive, BT Group said:

"This is good news for all fibre providers in the UK. For us, it is the greenlight we've been waiting for to get on and build like fury. Full fibre broadband will be the foundation of a strong BT for decades to come and a shot in the arm for the UK as we build back better from this pandemic. Connecting the country has never been more vital".

https://www.investegate.co.uk/bt-group- ... 03147004S/

[dealtn]

It looks like there is a potential buyer of the BT Sports business.

https://www.investegate.co.uk/bt-group- ... 05040492X/

Adds to the suspicion the sum of the parts valuation exceeds that currently given by the market to the Group.

The shares are up, albeit ion a generally rising market, to around 164p. Sub-100p 6 month ago seems like distant history now.

[Dod101]

It looks like there is a potential buyer of the BT Sports business.

That is not how the announcement reads to me. They talk about stimulating investment, finding a strategic partner and developing their sports business, not selling it.

Dod

[dealtn]

It looks like there is a potential buyer of the BT Sports business.

That is not how the announcement reads to me. They talk about stimulating investment, finding a strategic partner and developing their sports business, not selling it.

Dod

They might not buy all of it, but I expect there will be a partial sale (which would establish the correct valuation). It's not explicitly mentioned in the RNS, only an oblique reference to "Further to media reports ..." but the names of Amazon and Disney are both being linked to potential purchases of a stake in the business.

The relative valuations of US entertainment companies, such as these two, compared to valuations of BT.A and ITV, for instance, are striking. I have a bigger stake in the game with respect to ITV than BT.A, but see the same investment rationale.

[Dod101]

Thanks to both. BT might be better off in that sort of business than as a telephone operator.

Dod

[idpickering]

Finals here; https://www.investegate.co.uk/bt-group- ... 00064783Y/

Also posted on HYPP.

Ian.

[idpickering]

BT.A also put these out today;

BT to increase FTTP build by end 2026

https://www.investegate.co.uk/bt-group- ... 00084695Y/

BT announces Triennial Pension valuation

https://www.investegate.co.uk/bt-group- ... 00104696Y/

[dealtn]

Good news on the pensions front today

https://www.investegate.co.uk/bt-group- ... 00104696Y/

Life expectancy reduced at age of 60. I think it may also go be lowered for those in retirement too, but the actuarial modelling to catch up with Covid is presumably behind events - it doesn't impact this exercise anyway.

The company has secured a partial route to protect itself against "surplus capture".

Contributions in 2024-30 are now lower (but extend beyond 2030).

Calculations are based on a worse case real yield of -1.7% against the previous -0.8%. Any reversion will significantly improve the liability cost - unfortunately it will also significantly hurt the assets too due to hedging (don't expect any hedging policy change though).

Allowance for the return of a dividend, despite the ongoing funding requirements. Based on 7p rising at 10% pa.

The stock market is going to be poor at assessing this, and will no doubt focus on the company results also out today. Share price down about 3%.