By Adria Calatayud
BT Group PLC reported results for the first quarter of fiscal 2021 on Friday. Here's what you need to know:
REVENUE: The U.K. telecommunications company generated revenue of 5.25 billion pounds ($6.87 billion), ahead of expectations of GBP5.16 billion, according to a consensus provided by the company. This was lower than the GBP5.63 billion reported for the year-earlier period.
ADJUSTED EBITDA: BT's adjusted earnings before interest, taxes, depreciation and amortization--the company's preferred metric, which strips out exceptional and other one-off items--came in at GBP1.81 billion, exceeding a company-provided consensus of GBP1.75 billion. In the same period last year, BT's adjusted Ebitda was GBP1.96 billion.
WHAT WE WATCHED:
--GUIDANCE: BT surprised analysts by issuing guidance for the year ending March 31, 2021 for the first time. The company said adjusted revenue is expected to fall between 5% and 6%, and adjusted Ebitda is forecast to decline to between GBP7.2 billion and GBP7.5 billion. Current consensus expectations for adjusted Ebitda sit at the top of the range given by the company, prompting analysts at Citi to say BT's outlook was weaker than anticipated. Shares at 1156 GMT traded 3.6% lower at 104 pence.
--CORONAVIRUS: BT attributed the first-quarter revenue decline to the effects of the coronavirus pandemic. The company was hit by lower BT Sport revenue and a fall in business activity in its enterprise unit. BT also warned that the pandemic continues to weigh on its consumer division and that it expects a further hit to its enterprise unit in future quarters.
Write to Adria Calatayud at email@example.com