BT's Q2 result shows demand holding up amid pandemic

[LONDON] BT Group earned more than expected in the second quarter after people working from home across the UK paid for fiber broadband.

London-based BT reported adjusted earnings before interest, tax, depreciation and amortisation of £1.91 billion (S$3.38 billion) in the second quarter, versus £1.82 billion estimated by a consensus of analysts compiled by Bloomberg.

Second-quarter revenue was £5.36 billion, against a consensus estimate of £5.41 billion.

The company set out Ebitda guidance of "at least £7.9 billion pounds" for 2022/23. Chief executive officer Philip Jansen said restructuring is "firmly on track" and delivered £352 million in savings in the first half. He needs cash to pay for a nationwide fiber optic network upgrade as well as BT's pension plan, the UK's largest in the private sector.

Coronavirus has crimped BT's income from business clients, restricted pay-TV sports sales, and delayed smartphone upgrades.

Brexit also weighs on the economic outlook and the company is being forced to re-wire its network after the UK banned the use of its key supplier, China's Huawei Technologies, for 5G wireless technology.

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Britain's former telecom monopoly bolstered its takeover defences this summer as its market value sank to decade lows.

BT shares have fallen 47.2 per cent since the start of 2020, versus a fall of 26 per cent in the FTSE 100.

BLOOMBERG