BT Group PLC (LON:BT.A) saw profits dip in the year to the end of March as the Coronavirus (COVID-19) pandemic hit the top-line.
Revenue fell 7% to £21,331mln from £22,905mln the year before, primarily due to the impact of COVID-19 on its Consumer and enterprise units, ongoing legacy product declines and divestments, although the decline was partly offset by higher equipment revenue and Openreach bases in fibre and Ethernet.
Adjusted underlying earnings (EBITDA) of £7,415mln were down 6% from £7,907mln in the prior year, in line with guidance. Reported profit before tax tumbled 23% to £1,804mln from £2,353mln in the preceding year.
Net debt at the end of the financial year stood at £17,802mln, a reduction of £167mln on the debt pile a year earlier, after capital expenditure of £4,216mln (2018/19: £3,960mln).
The group, once one of the FTSE 100’s most generous dividend payers, has not declared a dividend. Payments are expected to resume at an annual rate of 7.7p per share in 2021/22.
The group said revenue in the current financial year is expected to be much the same as in the year just ended, while adjusted EBITDA is slated to be between £7.5bn and £7.7bn. The group is budgeting for capital expenditure of around £4.9bn and expects normalised cash flow to be between £1.1bn and £1.3bn.
“BT comes out of this challenging year as a stronger business with an even greater sense of purpose,” claimed Philip Jansen, the chief executive of BT.
“A number of uncertainties have now been removed. The Wholesale Fixed Telecoms Market Review, 5G spectrum auction and the Government's tax super-deduction give us the green light to build the UK's next-generation digital infrastructure even faster; today we are increasing and accelerating our FTTP target from 20mln to 25mln homes and businesses by December 2026 to deliver further value to our shareholders and support the Government's full-fibre ambitions. The conclusion of our triennial pension valuation today provides further clarity for shareholders,” he added.
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“After a number of years of tough work, and as we look to build back better from the pandemic, we're now pivoting to consistent and predictable growth. We are building a better BT for our customers, for the country, for our shareholders and for those who work for this great company - now and in the future,” he added.