This morning, telecoms giant BT reported a solid set of Q2 results, in which it said net profit increased to £566m on the back of a 35% jump in revenue to £6.05bn.
The group said that a possible reason for this success is down to good progress made with the integration of EE. Interested investors should appreciate that as a result of all of the above, the group remains on track to hit its full year expectations.
BT said that its consumer facing lines have performed well over the period but there is no doubt that the UK public sector remains challenging and the group will continue with cost cutting and improving efficiency. The company was also keen to highlight in the update that it will continue to work with Ofcom regarding the Digital Communication Review, saying that it had “submitted our response and will do what it can to reach the best outcome for the UK”.
The company’s chief executive Gavin Patterson commented that, “Customer experience remains a key priority, we’re stepping up our investments in the second half of the year and we’ll continue to invest in our ultrafast and 4G plans in 2017 and beyond”.
We continue to recommend BT as a ‘buy’ for medium risk investors with a balanced portfolio as the company transforms into the dominant telecoms provider in the UK, develops full value from the EE takeover and uses its strong cash flows to raise dividends.
Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest.
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