BT will have to open up business network to rivals, watchdog says
Regulator Ofcom says fully opening up the network will help increase overall investment in high-speed broadband and 5G mobile
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LON:BT.A
Operating in over 170 countries, BT is one of the world’s leading providers of communications solutions and services.
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Regulator Ofcom says fully opening up the network will help increase overall investment in high-speed broadband and 5G mobile
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United Utilities, Intertek, Mitchells & Butlers, TalkTalk Group, and Tate & Lyle are all in the schedule for Thursday.
Some have pointed to BT’s dwindling earnings as a key reason why the divi is not sustainable, but the US broker believes there is a “highly credible prospect” earnings will return to growth next year
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The Week Ahead will also bring news from power firm SSE and water groups Severn Trent and United Utilities, plus the latest UK inflation and retail sales numbers
“I’m asking our colleagues for their commitment to making BT a national champion and I want to give them ownership in our company and a share in our success,” boss Philip Jansen said
Grace Jones' Slave to the Rhythm might well have been about the pressure of a progressive dividend policy: 'Build on up, don't break the chain; Sparks will fly when the whistle blows'
Contrary to reports of a boardroom split, the telecoms group's decision to maintain the dividend was not a “close” one with the board unanimous
Despite rumours to the contrary, new CEO Philip Jansen has kept the divi on hold for the time being, but the way BT’s cash generation and profits are heading, the longer-term outlook is less certain
Annual revenue, profits, earnings and cash flow all declined, while debt ballooned
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In Europe, the German DAX tanked 206 points, while the French CAC 40 is down around 104
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Thursday's preview includes BT Group, Superdry, Morrisons, Barratt Developments, and RSA Insurance.
A split has apparently emerged between chairman Jan du Plessis and new chief executive Philip Jansen
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Stock markets in Europe have suffered severe declines as US-China trade tensions have heightened
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The week ahead includes updates from BT Group, Superdry, Morrisons, ITV, IAG, Barratt Developments, Direct Line, RSA Insurance and Imperial Brands
A series of emails show BT’s top executives were involved in artificially inflating the Italy division’s financial performance
Basic measures like dividend cover suggest a number of blue chips might be struggling to maintain their payouts at current levels
Berenberg analysts have argued that BT doesn’t have enough cash to fund both its dividend and the much-needed reinvestment
The new 340p target is 28% above Jefferies' previous forecast
“With the combined pension and net debt position a rather daunting £16.1bn, it’s hard to see the new CEO raising the dividend in May’s full years,” said George Salmon, equity analyst at Hargreaves Lansdown
Outgoing chief executive, Gavin Patterson, said he believes he is handing over the business to new boss Phil Jansen with “good momentum behind its ongoing transformation programme”