BT share price creeps up as demand for fibre drives growth
BT posted better-than-expected first quarter results yesterday on the back of growing demand for fibre. However, it received a tepid 0.15 per cent share price rise as investors waited to see how the Bo bets on sport and mobile play out.
Revenue at the group rose just 0.5 per cent on a like-for-like basis to £4.35bn as strong growth in BT’s flagship Consumer division (responsible for fixed-line voice, broadband and TV, including BT Sport) compensated for declining revenues in BT’s Wholesale, Business and Global Services divisions. Total profit rose seven per cent to £638m.
“The second season of BT Sport is about to start with a great line up of content and it will continue to be free with BT Broadband. We are building on solid foundations and I am confident we will deliver on our strategy,” said BT chief executive Gavin Patterson on the results.
CCS Insight director Paolo Pescatore said: “There is undoubtedly a good vibe at BT. Now, crucially, the company needs to keep on delivering. Overall, BT has had a good start to its new financial year and it promises to be an exciting one.”
Shares closed up at 388.5p.