BT reassured shareholders about return to growth

A company reassured shareholders that it was on track to return to top-line growth this year and produce core earnings of at least 7.9 billion.

It increased its cost savings target to 2.5 billion by the end of the 2025 financial year from 2.0 billion by the end of FY 24.

In early trading on Thursday, the shares of BT went up more than 2 per cent, but gave up some of the gains to trade 1 per cent higher at 178 pence by mid morning, about the same price they were trading at three decades ago.

Jansen said that the Discovery joint-venture would create a compelling sports offer for customers, reduce exposure to expensive rights costs and provide a medium-term exit route.

BT had improved its mobile and broadband offering by simplifying products, bundling services and cutting repair times, which resulted in churn remaining at or near historical lows despite price rises last month, he said.

The consumer division, which will focus more on the EE mobile brand, returned to growth in the fourth quarter.

Jansen said it was difficult to predict what impact the cost-of-living squeeze in Britain would have on the market. He said that the low churn rate is a reason why we're offering our customers the low churn rate.

BT reported a 2 per cent increase in core earnings to 7.6 billion for the year to end-March, in line with market expectations, on revenue 2 per cent lower at 20.9 billion.