BT Group PLC (LON:BT.A) shares edged lower on Monday afternoon after the telecoms giant said it expects the adoption of a new IFRS 15 accounting standards to have an “adverse impact” on this year’s results.
The FTSE 100 group said the affect on revenue in the 2018/19 financial year would be in “the high tens of millions of pounds”, while underlying earnings (EBITDA) would take a hit in “the low tens of millions”. There would be no impact on cash flow, BT added.
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On an IFRS 15 basis, the company expects to report adjusted underlying earnings (adjusted EBITDA) of between £7.3-7.4bn.
Underlying revenue, which excludes things like foreign exchange movements and other specific items, is expected to drop 2% year-on-year.
Having been higher in the morning session, BT shares were down almost 1% to 216.7p in late afternoon trading.