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Bt Group Plc (Bt.A) (GB:BT.A)
:BT.A
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BT Group plc (BT.A) AI Stock Analysis

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GB:BT.A

BT Group plc

(LSE:BT.A)

Rating:75Outperform
Price Target:
240.00p
▲(12.78% Upside)
BT Group plc's stock score is driven by strong technical momentum and solid financial performance, despite challenges in revenue growth and high leverage. The positive sentiment from the earnings call and strategic initiatives for future growth further support the score. Valuation metrics suggest the stock is fairly valued, with a decent dividend yield providing additional investor appeal.

BT Group plc (BT.A) vs. iShares MSCI United Kingdom ETF (EWC)

BT Group plc Business Overview & Revenue Model

Company DescriptionBT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through Consumer, Enterprise, Global, and Openreach segments. The Consumer segment offers landline, mobile, broadband, and TV services under the BT, EE, and Plusnet brands. The Enterprise segment provides network solutions to communications providers; and sells communications and IT services to businesses and public sector organizations. Its services include fixed voice, mobile, fixed connectivity, and IT services. The Global segment secures and manages network and cloud infrastructure and services for multinational corporations. It also offers voice and data network services, such as managed, security and network, and IT infrastructure services. The Openreach segment provides fixed connectivity access network that connects homes, mobile phone masts, schools, shops, banks, hospitals, libraries, broadcasters, governments, and big and small businesses. This segment also offers last mile, a service over the local access network; and installs and maintains fiber and copper communications networks from exchanges to homes and businesses. BT Group has strategic partnership with Microsoft. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyBT Group generates revenue through multiple streams, primarily from its telecommunications services, which include both retail and wholesale offerings. Key revenue streams include monthly subscription fees for residential broadband and mobile plans, as well as fees for landline services. The company also earns revenue from its enterprise solutions, providing business customers with data, voice, and IT services, including cloud services and cybersecurity solutions. Significant partnerships with technology companies and content providers, such as sports broadcasting partnerships, further bolster its earnings by attracting more subscribers and enhancing its service offerings. Additionally, BT's investments in network infrastructure, particularly in fiber and 5G technology, are expected to drive future revenue growth by expanding its customer base and improving service quality.

BT Group plc Earnings Call Summary

Earnings Call Date:May 22, 2025
(Q4-2025)
|
% Change Since: 29.24%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments such as record fiber build, EBITDA growth, and increased dividends, alongside challenges including line losses and revenue declines in certain segments. The company remains confident about future cash flow inflection and strategic goals.
Q4-2025 Updates
Positive Updates
Full Fiber Build and Connections Record
BT broke records on full fiber build and connections, surpassing their original plan by reaching 18 million premises with a 4.3 million build in a year, and customer demand remained strong with 6.5 million connections.
EBITDA and Cash Flow Growth
Despite revenue pressure, BT delivered EBITDA growth and a better-than-expected GBP 1.6 billion of normalized free cash flow, driven by cost transformation and record investment levels.
Dividend Increase
Reflecting performance and confidence in cash flow expansion, BT increased their total dividend to 8.16p per share.
Customer Experience Improvements
BT saw NPS improvements across customer-facing divisions and met all Ofcom quality service standards, contributing to higher customer satisfaction.
Openreach Performance
Openreach delivered a record year in build, provisions, revenue, and EBITDA, with a full fiber footprint now reaching over half the UK.
Negative Updates
Line Losses in Broadband
BT experienced higher line losses than expected, particularly in areas without full fiber and with CPs not maintaining market position, amidst a slightly shrinking fixed broadband market.
Revenue Decline
Adjusted revenue for the year was GBP 20.4 billion, down 2%, with declines in Consumer and Business segments only partially offset by Openreach growth.
Challenges in Business Segment
Business revenue was down 4%, impacted by international trading, adverse FX impacts, and declines in legacy voice products.
Company Guidance
In the call, BT Group provided comprehensive guidance for the upcoming fiscal years, highlighting several key metrics. They anticipate an EBITDA growth with an expected range of £8.2 billion to £8.3 billion for fiscal year 2026, despite revenue pressures. The company plans to accelerate its full fiber build to reach 23 million homes and businesses next year, with a long-term goal of 30 million by the end of the decade. They reported a £1.6 billion normalized free cash flow for fiscal year 2025 and are targeting £2 billion by fiscal year 2027 and £3 billion by 2030. BT Group also plans to increase its dividend to 8.16 pence per share, reflecting confidence in cash flow expansion. Capital expenditures are projected to peak at around £5 billion in fiscal year 2026, before reducing by more than £1 billion annually post-2026 as major infrastructure projects conclude. The company is committed to strategic investments, cost transformation, and leveraging AI for operational efficiency to drive future growth and shareholder value.

BT Group plc Financial Statement Overview

Summary
BT Group plc demonstrates solid operational efficiency with strong EBITDA margins, but faces challenges with declining revenue and high leverage. The balance sheet shows stability in equity ratios, while cash flow metrics highlight strong operational cash generation. Overall, the company maintains resilience despite industry pressures.
Income Statement
65
Positive
BT Group plc has seen a decline in total revenue over the past years. The gross profit margin improved recently, indicating effective cost management. However, the net profit margin remains modest due to increased operational expenses, and revenue growth has been negative. The EBITDA margin is strong, reflecting good operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is relatively high, suggesting significant leverage. However, the equity ratio is stable, showing resilience in equity financing. Return on equity has fluctuated but remains positive, indicating profitability relative to shareholder investments.
Cash Flow
75
Positive
BT Group's operating cash flow is consistently strong, supporting its capital expenditures. Free cash flow improved significantly in the latest year, enhancing financial flexibility. The operating cash flow to net income ratio is robust, demonstrating effective cash generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.36B20.80B20.68B20.85B21.33B
Gross Profit14.99B9.71B15.17B13.78B13.80B
EBITDA7.27B6.46B7.47B7.23B6.88B
Net Income1.05B855.00M1.91B1.27B1.47B
Balance Sheet
Total Assets50.98B51.74B52.75B49.77B50.88B
Cash, Cash Equivalents and Short-Term Investments2.81B2.31B3.94B3.46B4.65B
Total Debt23.33B23.48B23.88B21.95B22.84B
Total Liabilities38.07B39.22B38.24B34.48B39.20B
Stockholders Equity12.91B12.52B14.51B15.30B11.68B
Cash Flow
Free Cash Flow2.05B984.00M1.42B1.30B1.06B
Operating Cash Flow6.99B5.95B6.72B5.91B5.96B
Investing Cash Flow-5.01B-3.54B-6.40B-3.56B-3.24B
Financing Cash Flow-2.11B-2.43B-636.00M-2.56B-3.22B

BT Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price212.80
Price Trends
50DMA
196.49
Positive
100DMA
180.31
Positive
200DMA
162.53
Positive
Market Momentum
MACD
5.01
Positive
RSI
64.16
Neutral
STOCH
64.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BT.A, the sentiment is Positive. The current price of 212.8 is above the 20-day moving average (MA) of 208.49, above the 50-day MA of 196.49, and above the 200-day MA of 162.53, indicating a bullish trend. The MACD of 5.01 indicates Positive momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 64.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BT.A.

BT Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£7.91B30.569.48%2.09%6.56%2630.77%
75
Outperform
£20.50B19.538.29%3.83%-2.23%22.78%
70
Outperform
£1.01B14.9519.42%1.77%11.06%31.61%
61
Neutral
£21.05B8.78-7.22%4.00%-0.59%-489.50%
56
Neutral
HK$68.37B0.28-4.91%5.02%-0.86%-12.88%
£8.58B-10.35%
$1.76B52.52
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BT.A
BT Group plc
212.00
82.65
63.90%
GB:GAMA
Gamma Communications
1,074.00
-433.58
-28.76%
GB:VOD
Vodafone
88.48
18.62
26.65%
GB:ZEG
Zegona Communications
1,120.00
766.00
216.38%
GB:AAF
Airtel Africa Plc
213.20
104.67
96.44%
HTWSF
Helios Towers
1.67
0.05
3.09%

BT Group plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
BT Group Executives Conduct Share Transactions Under Restricted Share Plan
Neutral
Aug 5, 2025

BT Group plc announced transactions involving its senior executives under the BT Group Restricted Share Plan. Key executives, including the Chief Financial Officer and Chief People & Culture Officer, vested and sold shares primarily to cover tax obligations. These transactions highlight the company’s ongoing management of executive compensation and shareholding strategies, potentially impacting stakeholder perceptions and market confidence.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Regulatory Filings and Compliance
BT Group Announces Total Voting Rights for July 2025
Neutral
Jul 31, 2025

BT Group plc announced its total voting rights as of 31 July 2025, with its capital consisting of 9,968,127,681 ordinary shares, out of which 1,259,186 are held as treasury shares. This results in a total of 9,966,868,495 voting rights. This disclosure is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting their stake management and compliance obligations.

The most recent analyst rating on ($GB:BT.A) stock is a Buy with a £220.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
BT Group Grants Executive Awards Under Restricted Bonus Plan
Neutral
Jul 28, 2025

BT Group plc has announced the grant of awards under its Restricted Bonus Plan to several key executives, including the Chief Executive and Chief Financial Officer. This move is part of the company’s strategy to align executive incentives with shareholder interests, potentially impacting the company’s operational focus and market positioning.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
BT Group’s Strong Start: Expanding Networks and Meeting Targets
Positive
Jul 24, 2025

BT Group reported a solid start to the year with significant expansion in its full fibre broadband and 5G network coverage, reaching over 19 million homes and businesses and 87% of the UK population, respectively. The company is experiencing strong customer demand for its broadband and mobile services, with record Openreach fibre take-up and continued investment in network infrastructure. Despite a slight decline in overall revenue and profit due to weaker handset sales and international trading challenges, BT is on track to meet its annual targets, supported by cost transformation efforts that have offset increased costs. The company continues to focus on improving customer experience, as evidenced by a rise in its Net Promoter Score.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
BT Group Announces CFO Transition with Patricia Cobian’s Appointment
Neutral
Jul 24, 2025

BT Group plc has announced the retirement of its Group Chief Financial Officer, Simon Lowth, after nine years in the role, with Patricia Cobian set to succeed him. Cobian, currently CFO at Virgin Media O2, will join BT’s Board and Executive Committee in 2026, bringing extensive telecom industry experience. Her appointment is part of BT’s strategy to continue its digital infrastructure upgrade and modernization efforts, aiming to drive growth and value for stakeholders.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Executive/Board ChangesShareholder MeetingsStock BuybackDividends
BT Group plc AGM 2025: Key Resolutions Passed
Positive
Jul 10, 2025

BT Group plc held its Annual General Meeting on 10 July 2025, where shareholders voted on various resolutions. Key outcomes included the approval of the directors’ remuneration report and policy, the re-election of several directors, and the declaration of a final dividend. Additionally, KPMG LLP was reappointed as the auditor, and the board was authorized to make market purchases and political donations. These decisions reflect strong shareholder support for the company’s strategic direction and governance, potentially reinforcing BT Group’s stability and market confidence.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Regulatory Filings and Compliance
BT Group Announces Total Voting Rights for June 2025
Neutral
Jun 30, 2025

BT Group plc has disclosed its total voting rights as of 30 June 2025, with the capital consisting of 9,968,127,681 ordinary shares, of which 1,281,273 are held as treasury shares. This results in a total of 9,966,846,408 voting rights available for shareholders, which is crucial for determining notification requirements under the FCA’s rules, potentially impacting shareholder engagement and transparency.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
BT Group Executives Conduct Share Transactions to Cover Tax Obligations
Neutral
Jun 25, 2025

BT Group plc announced the vesting and sale of shares by several key executives, including the Chief Financial Officer, Group General Counsel, Chief Security and Networks Officer, and Chief People & Culture Officer. These transactions primarily aim to cover tax obligations related to the vesting of shares under the company’s Deferred Bonus and Restricted Share Plans. The transactions were conducted in London on June 24, 2025, and involve a significant volume of shares, reflecting the company’s ongoing commitment to transparent financial practices.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
BT Group Aligns Executive Incentives with Deferred Bonus Plan Awards
Positive
Jun 17, 2025

BT Group plc has announced the grant of awards under its Deferred Bonus Plan to several key executives, including the Chief Executive and Chief Financial Officer. This move is part of the company’s strategy to align the interests of its leadership with long-term shareholder value, potentially impacting its market positioning by reinforcing executive commitment and stability.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
BT Group Publishes 2025 Annual Report and Announces Hybrid AGM
Neutral
Jun 12, 2025

BT Group plc has released its Annual Report for 2025, which is now accessible on their website. The report includes important regulatory information such as principal risks, uncertainties, and related party transactions. The upcoming Annual General Meeting will be conducted as a hybrid event, allowing shareholders to participate either online or in person, reflecting BT’s commitment to accessibility and transparency.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Regulatory Filings and Compliance
BT Group Announces Total Voting Rights for May 2025
Neutral
May 30, 2025

BT Group plc announced that as of 30 May 2025, its capital consisted of 9,968,127,681 ordinary shares with voting rights, with 11,290,418 held as treasury shares. This results in a total of 9,956,837,263 voting rights, which shareholders can use to determine their notification requirements under the FCA’s rules.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Business Operations and Strategy
BT Group Enhances Employee Engagement with Share Purchase
Positive
May 19, 2025

BT Group plc announced a transaction involving the purchase of 1,101 ordinary shares by Equiniti Share Plan Trustees Limited as part of the BT Group Employee Share Investment Plan. This transaction, conducted on May 15, 2025, reflects the company’s ongoing efforts to engage employees through share investment, potentially impacting stakeholder confidence and employee involvement in the company’s growth.

The most recent analyst rating on ($GB:BT.A) stock is a Sell with a £140.00 price target. To see the full list of analyst forecasts on BT Group plc stock, see the GB:BT.A Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025