31st January 2014
Brokers are backing BT Group after the firm not only revealed consensus-beating results but that its Sky Sports rival has managed to attract a abundance of customers writes Philip Scott.
Today BT Group, the UK’s leading fixed line telecoms group, reported positive results that show its free to customers sports TV attracted 2.5m customers, boosting earnings in the third quarter and beating the consensus of analyst estimates.
The company reported pre-tax profits of £617m for the three months to the end of December, on revenues of £4.6bn, prompting a 3% share price rise by 2.20pm today.
As a result, BT has raised its earnings guidance for the year to the top end of its range. The broker consensus on share data hub, Digital look has the stock, which has surged by 48% over the past 12 months, down as a ‘buy’.
Sheridan Admans, investment research manager at The Share Centre says: “Investors will be pleased to see BT’s challenge of offsetting falling landline numbers seems to be working. The company lost 70,000 customers in the quarter but increased broadband subscription by 150,000 new users.
“BT has also been benefitting from operating efficiencies supporting earnings and demand. Income seekers will be interested to hear the company expects to grow dividends by 10% – 15% per annum over the next three years. We continue to recommend BT as a ‘buy’ for investors.”