BT Group stock hits eight-year high after results beat estimates

BT Group reached its highest London share-price level in eight years after its fiscal second-quarter results beat market expectations and the company agreed to restructure its pension plan, Cinco Días reported on Friday, November 6. The report said the shares reached 240.50 pence during Thursday's session, November 5, before closing with a slight gain.

BT reported first-half profit before tax of 1.07 billion pounds for the period ended September 30, up from 956 million pounds a year earlier. Half-year revenue increased 0.6 percent to 8.75 billion pounds, while second-quarter adjusted revenue rose 1.6 percent to 4.43 billion pounds, above the 4.314 billion pounds market consensus cited by Cinco Días.

Openreach supports operating performance

Openreach added 1.1 million net fiber-to-the-premises connections during the first half, taking the number of connected premises above 10 million in October. Average revenue per user at the network division increased 7 percent year over year to 17.8 pounds.

Adjusted second-quarter EBITDA rose 2.5 percent to 2.08 billion pounds, exceeding the 2.022 billion pounds consensus cited in the report. The figures keep the performance of Openreach and the pace of fiber expansion central to the investment case.

Pension agreement changes capital priorities

BT said a three-year agreement would reduce its pension deficit from 3.7 billion pounds to 2.7 billion pounds as of June. The company plans to contribute 2.1 billion pounds through financial instruments, leaving a projected residual deficit of about 300 million pounds.

The arrangement allows potential shareholder distributions of up to 1.5 billion pounds in fiscal 2027 and up to 2.0 billion pounds by 2030. BT also raised its annual savings target for fiscal 2030 to 3.5 billion pounds from 3.0 billion pounds previously and expects its UK workforce to decline to between 65,000 and 70,000 employees.

BT maintained its full-year free cash flow target of 2.0 billion pounds. The company is still awaiting regulatory approvals to complete its planned 400 million pound acquisition of TalkTalk.

BT Group stock traded at 2.63 euros on Lang & Schwarz at 6:33 p.m. CET on Friday, November 6; investors can follow the real-time quote of BT Group stock.

European investors are also watching developments across the FTSE 100 as telecom earnings and interest-rate expectations shape sector sentiment.

More news and analyses are available on BT Group stock.