BT BT Group PLC

   By Adria Calatayud 
 

BT Group PLC (BT.A.LN) reported results for its third fiscal quarter on Thursday. Here's what you need to know:

REVENUE: The British telecommunications company generated revenue of 5.98 billion pounds ($7.83 billion) in the quarter to Dec. 31. This was 1.4% below revenue of GBP6.07 billion in the year-earlier period, but ahead of analysts' forecasts of GBP5.97 billion, according to a consensus estimate provided by the company.

ADJUSTED EBITDA: BT posted quarterly adjusted earnings before interest, taxes, depreciation and amortization--its preferred profit measure, which strips out exceptional items--of GBP1.88 billion. This represented a 3% fall on year, but exceeded analysts' expectations of an adjusted Ebitda of GBP1.82 billion, according to a company-provided consensus.

WHAT WE WATCHED:

-OUTLOOK: BT expects adjusted Ebitda for the year to March 31 to be near the top end of its previous guidance range of GBP7.3 billion to GBP7.4 billion, having previously anticipated to be "in the upper half." However, the company flagged significant market and regulatory pressures and warned on Brexit-related uncertainty. BT shares at 1532 GMT traded 1.4% lower at 230.80 pence.

Analysts at Jefferies said BT's outlook comments on uncertainties, including Brexit, suggested the company could face headwinds in fiscal 2020, which would ease in the following year thanks to the benefits of the restructuring launched in May. Meanwhile, UBS analysts said BT's consumer division--which was the main driver behind its third-quarter beat--could be under more pressure in the current quarter.

-NEW CEO: Former Worldpay Inc. (WP) co-chief executive Philip Jansen will become BT's CEO on Friday, replacing Gavin Patterson. In a call with analysts, Mr. Jansen said he would outline his strategy for the company at the presentation of the full-year results in May. However, he said BT is in a period of sustained investment, which is required to transform its business.

-HUAWEI: Mr. Patterson, BT's departing CEO, tried to distance the company from concerns surrounding China's Huawei Technologies Co. In December, BT said it would remove Huawei gear from the core of its network as part of a planned upgrade. Although BT has a long-term relationship with the Chinese telecommunications-equipment maker, it also has robust security controls, Mr. Patterson said in a call with analysts. "We operate with close alignment with the [U.K.'s National Cyber Security Centre] to proactively manage how we use Huawei in our network," Mr. Patterson said.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

January 31, 2019 10:56 ET (15:56 GMT)

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