BT Group PLC (LSE:BT.A) first quarter results are out Thursday with UBS highlighting three things investors should focus on.
Firstly, the impact on financials from the recent price increases in Consumer and Openreach, secondly the implications of any industrial action at the company and thirdly signs of building economic pressures on the Enterprise/B2B divisions.
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Consensus forecasts are for 0.8% growth in revenues and a 1.2% increase in underlying profits [EBITDA) with strong performances in Consumer/Openreach offset by declines at Enterprise GS.
BT is currently trading around 180p with UBS expecting the share price to remain volatile and trade between 150p-200p.
Factors on the upside include stake building by Altice, which holds an 18% stake, and price rises linked to CPI.
Downside factors include macro impacts on Enterprise/GS units, wage inflation and rising competition for Openreach.