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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
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.

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