BT has posted a fall in earnings and warned sales and profits will fall over the year amid “very challenging and competitive UK market.”
The telecoms giant reported a 2% drop in underlying earnings to £7.4bn in the year to 31 March, and underlying earnings to set to fall between £7.2bn and £7.3bn over this year and 2020.
Pre-tax profits were up by 2% to £2.7bn for the same period, revenues were 1% lower to £23.4bn.
BT’s newly appointed chief executive, Philip Jansen said dividend payout for shareholders will remain unchanged for 2018 and 2019, as well as 2019 to 2020 “given our outlook for earnings and cash flow.”
Jansen, who was appointed in February said. “While we are really well positioned in a very challenging and competitive UK market, we have a lot of work to do to ensure we remain successful and deliver long-term, sustainable value to our shareholders.
“We need to invest to improve our customer propositions and competitiveness.
“We need to invest to stay ahead in our fixed, mobile and core networks, and we need to invest to overhaul our business to ensure that we are using the latest systems and technology to improve our efficiency and become more agile.”