BT Gets Bullish
The British operator boosted its earnings per share by 46 percent to 19.4 pence and has proposed a dividend of 7.4 pence for shareholders, a 7 percent increase from a year ago.
BT reduced its net debt by £467 million ($761 million) to £8.8 billion ($14.3 billion), cut its pension deficit by £4.3 billion ($7 billion) to £1.4 billion ($2.3 billion) and reported a marked improvement in the financial health of its Global Services division, allaying a number of investor concerns.
The carrier expects its annual revenues to remain roughly flat during the next few years but its earnings and cash flow performance to improve.
Although the performance was slightly better than financial analysts had expected, BT's share price dipped by 2.7 percent to 197 pence on the London Stock Exchange. BT's share price has been on the rise recently, though, having gained 66 percent during the past year and more than 12 percent since mid-March, so a degree of profit-taking by investors is possible.
— Ray Le Maistre, International Managing Editor, Light Reading