Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

BT expects “adverse impact” from adoption of new accounting standards

The IFRS 15 standard was brought in earlier this year so it was closer to FASB’s accounting guidance
accounting
BT expects to report adjusted underlying earnings of between £7.3-7.4bn this year

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.

READ: BT looking to sell off scandal-hit Italian business

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.

View full BT.A profile View Profile

BT Group PLC Timeline

Related Articles

Cyber-security
August 19 2018
BATM's Networks & Cyber division returned to growth in 2017

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use