Jump to content

FTSE 100: BT shares slump as cost cuts bite


MongiIG

Recommended Posts

As BT spends money on expansion of fibre services it’s cutting costs in other areas of its business. Growth in its consumer and Openreach networks arm offset lower spending by large corporate customers.

 Jeremy Naylor | Writer, London | Publication date: Thursday 03 November 2022

BT shares pummeled after H1

BT, the UK's biggest mobile operator and broadband supplier, has seen its shares pummeled today as a result of news coming through for first half (H1) earnings.

Let's take a look at the figures. The main sweep of this big drop in the stock has been as a result of cost savings. It's raised its cost savings target by a margin of half a billion pounds to help fund the rising cost of building its fiber network as it met its earnings forecasts in the first half.

You can see that revenue up 1% to £10.4 billion. Adjusted EBITDA was up 3% to £3.9 billion. But it's this CapEx outlook that's been revised. And all this has caused such a problem for investors this morning.

Share price chart

Let's take a look at the share price chart. You can see here on the far right hand side that we're now trading at levels pretty much not seen since November 2020.

BT said growth in its consumer and Openreach networks offset lower spending by large corporate customers and the impact of BT sport disposals delivering a 1% rise in adjusted revenue to £10.4 billion.

And you can see here the reaction in the stock. If we close at these levels, it will be the lowest close since December 2020. So very close to two-year lows in the stock of BT.

Where's it to go from here? Well at the moment at least, it's settling out at this 117 pence level. So I wouldn't want to be too short on this stock at the moment. Quite often what happens is you then end up getting a little bit of a retracement. In other words, it might be a little bit of an uplift in the next few days or so.

The problem is that BT, as part of the FTSE 100, which has been pummeled in its own right today because of the big drop in stocks in the wake of the Fed interest rate announcement, we are trading ahead of the Bank of England (BoE).

That shouldn't have too much of an effect on BT stock, but I think from here on in we could well end up being supported at these levels for some little time to come.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • I've always found the idea of combining Web3 and real estate intriguing. Now, with Parcl Protocol from Parcl Labs, that curiosity is becoming tangible. This platform offers a new approach to investing in real estate prices from cities like Miami Beach and New York, using current price data. What makes Parcl unique is its emphasis on decentralized real estate trading. It enables the buying and selling of real estate assets anytime, anywhere, through a decentralized exchange.If you are holding PRCL their native token you can  participate in governing the Protocol. Plus, there are perks like Perpetual Network Incentives, offering extra benefits to users. The numbers tell an impressive story: Parcl Protocol is a notable DeFi app in the Solana ecosystem, with over $180M+ locked in. In a short span, it has facilitated trades of over 2.1M square feet of real estate exposure, equivalent to 1,400+ properties.The total traded volume? A significant $940M+.with tokens listing on exchanges like Bitget, the platform's reach and potential only continue to grow, Could Parcl be a game-changer in real estate? (Edited)
    • Calling all crypto traders! Gear up for an epic month of rewards with Bitget’s April Trading: Chase the 1 BTC Halving Treasure campaign. Uncover hidden riches across three exciting activities.   Ready to embark on your treasure hunt? Start trading here:https://www.bitget.com/register Campaign Period: Throughout April (specific dates may apply for each activity, see details on Bitget website) Don’t miss out on this chance to win big with Bitget’s April Trading campaign
    • Parcl Labs' decentralized perpetuals exchange, Parcl (PRCL), has carved a unique niche in the DeFi space. Focused on real estate synthetics, Parcl allows users to gain exposure to the price movements of real-world cities like Miami Beach and New York through cutting-edge, real-time price feeds. This innovative approach has propelled Parcl to the top spot in terms of Total Value Locked (TVL) within the Solana ecosystem, exceeding a staggering $180 million. Parcl's success is further demonstrated by the impressive activity on its V3 exchange. Within a few short months, users have facilitated the trading of over 2.1 million square feet of notional real estate exposure, equivalent to over 1,400 physical properties. The total notional volume traded on V3 to date surpasses a remarkable $940 million. Additionally, the PRCL token itself is listed on the Bitget exchange, providing further accessibility and potential for the project.
×
×
  • Create New...
us