Why BT is up 15% this year
Filed under: Investing
The telecoms group, whose 11 million household customers collectively spent 38 billion minutes on the phone last year, has defied the wider economic gloom with a series of resilient statements.
In fact, May's full-year figures showed free cash flow of £2.5 billion. BT's annual numbers also revealed adjusted sales declining 4% to £19.3 billion and adjusted profits advancing 6% to £3.1 billion.
Ian Livingstone, BT's chief exec, said at the time: "In what remains a challenging environment we have delivered another year of growth in profits and free cash flow. Our financial strength has allowed us to invest in the business, make a £2bn payment into the pension fund, reward employees and deliver double digit growth in shareholder returns."
He also promised the dividend would grow between 10% and 15% per year for the next three years, and that £300 million would be spent on share buybacks during 2013.
Then in July, BT published a first-quarter update that showed sales down 6% to £4.8 billion and profits up 6% to £740 million. The group said the progress was based on "good performances" in BT Retail, BT Wholesale and Openreach, although BT Global Services "was impacted by the tough conditions in Europe and the financial services sector".
BT's next update will occur on November 1 with the group's half-year results, which may provide further resilient news.