Share Prices & Company Research

Market News

07 May 2020 | 07:42

BT pulls dividend as full-year profit, revenue decline

(Sharecast News) - BT pulled its dividend on Thursday due to the coronavirus pandemic, as it posted a drop in full-year profit and revenue. The company said the final dividend for 2019/20 has been suspended, along with all dividends for 2020/21 "to create capacity for value-enhancing investments and managing confidently through the Covid-19 crisis". It expects to resume dividend payments in 2021/22 at an annual rate of 7.7p per share.

In the year to the end of March, pre-tax profit fell to ?2.35bn from ?2.67 bn the year before, while revenue edged down 2% to ?22.9bn. BT said the profit figure includes charges of ?95m as a result of Covid-19, mainly reflecting increased debtor provisions. The drop in revenue, meanwhile, was attributed to the impact of regulation, declines in legacy products, strategic reductions in low margin business and divestments.

Chief executive Philip Jansen said the coronavirus crisis was affecting the business, but that the full impact will only become clearer as the economic consequences unfold over the next 12 months. He added that the company was not providing any guidance for 2020/21 due to the pandemic.

"Today we are announcing a rapid acceleration of our Fibre-to-the-Premises build with a target of 20 million premises passed by the mid- to late-2020s, including a significant build in rural areas. After passing 1.3 million premises last year, we are aiming at over 2 million in 2020/21, and envisage a maximum build rate of 3 million premises per year," he said.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.