🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

London shares to jump out of the gate as BT and easyJet report

Published 16/05/2024, 07:52
© Reuters.  FTSE 100 live: London shares to jump out of the gate as BT and easyJet report
UK100
-
BT
-

Proactive Investors - BT Group PLC (LON:BT) results look a little shy of expectations, but the dividend has been nudged higher, which may override the rest of the numbers for many investors.

New boss Allison Kirkby said that as the telco has passed the point of peak capital investment into its full-fibre broadband rollout and achieved its £3 billion cost cutting programme a year ahead of schedule, "we've now reached the inflection point on our long-term strategy".

With the plan now to more than double free cash flow over the next five years, she says this means the dividend is being hiked, well a 3.9% increase, with a final dividend of 5.69p per share making a total of 8.0p for the past year.

Kirkby has also set a new £3 billion target of gross annualised cost savings to be reached by the end of March 2029.

As for the results for the year to March 2024, revenue of £20.8 billion was up 1% on the prior year, slightly below the average City analyst's forecast of £20.9 billion as fourth-quarter revenue came in at £5.08 billion versus the £5.16 billion forecast.

Underlying profits (adjusted EBITDA) were up 2% to £8.10 billion, again a smidge below the consensus of £8.15 billion, with adjusted earnings per share down 16% to 18.5p, versus the consensus EPS forecast of 19.2p.

On the outlook, revenue is guided to growth between 0% and 1% and EBITDA just above flat to around £8.2bn (forecasts are currently at around £8.3 billion), with capital expenditure excluding spectrum less than £4.8 billion and normalised free cash flow of around £1.5 billion.

FTSE 100 to jump out of the gate

The FTSE 100 is heading for a smooth start again on Thursday, with another day full to the brim with corporate results, including BT Group, easyJet (LON:EZJ), Future (LON:FUTR), Sage Group (LON:SGE), Premier Foods (LON:PFD) and United Utilities (LON:UU).

Spread-betters have called London's blue-chip benchmark 22 points higher ahead of the open, after the index notched another record intraday day high (8,474.41) and all-time closing high, up almost 18 points yesterday to 8,445.8.

Overnight, the three major US stock indices all closed at new record highs too, as softer inflation report strengthened rate cut expectations.

The Nasdaq gained 1.4% and the S&P 500 added 1.2%, while the Dow Jones rose 0.9%.

As the meme stock rally of the last three days faded, GameStop (NYSE:GME) shares retreated by 18% and AMC was down 20% at the closing bell.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.