As BT’s share price drops 8%, should I buy more?
Image source: BT Group plc
BT’s (LSE: BT.A) share price has dropped 8% from its 26 September 12-month traded high of £1.52. Much of this came around the time of its H1 results released on 7 November.
Were the results that bad?
The key message for me from the H1 numbers is that BT can increase its earnings even when revenues drop.
Specifically, revenue fell 3% year on year to £10.1bn. However, earnings rose 1%, to £4.1bn. The discrepancy is mainly due to ongoing cost-cutting, which saw £433m gross annualised savings during H1.
Looking ahead, Britain’s biggest broadband and mobile company reduced its full-year revenue forecast from flat to down 1%-2%. This reflects anticipated weaker demand in the…
