BT Group shares soar after price increases boost revenue

By Najat Kantouar

BT Group shares soared Thursday, leading the FTSE 100 index's gainers after the company said revenue for its fiscal year was boosted by price increases.

At 0758 GMT, shares (UK:BT.A) (BTGOF) were up 10.40 pence, or 9.2%, at 123.55 pence. In the year so far, shares have slipped by around 0.1%.

The U.K. telecommunications company said Thursday that pretax profit for the year ended March 31 fell to 1.19 billion pounds ($1.51 billion) from GBP1.73 billion a year earlier, missing a market consensus of GBP2.055 billion based on five analysts' forecasts taken from FactSet. This reflects a noncash goodwill impairment allocated to its business segment of GBP488 million after a decline in profitability in recent years, it said.

Adjusted earnings before interest, taxes, depreciation and amortization-one of the company's preferred metrics-rose to GBP8.10 billion from GBP7.93 billion.

Group revenue for the period rose to GBP20.80 billion from GBP20.67 billion, below consensus of GBP20.92 billion based on 12 analysts' forecasts.

Openreach broadband average revenue per user grew 10% to GBP15.1, reflecting price rises and increased volumes and mix of its fiber-to-the-premises service.

Consumer broadband average revenue per user rose 5% to GBP41.2, while consumer postpaid mobile average revenue per user increased 9% to GBP19.4.

The board declared a final dividend of 5.69 pence a share, bringing the full-year dividend to 8.0 pence, up 3.9%.

Looking ahead, BT expects adjusted revenue growth of 0% to 1% and Ebitda of around GBP8.2 billion in fiscal 2025. Capital expenditure is anticipated to be less than GBP4.8 billion, while free cash flow is expected at around GBP1.5 billion.

Write to Najat Kantouar at najat.kantouar@wsj.com

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05-16-24 0520ET

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