BT Group plc (GB:BT.A)
LSE:BT.A
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BT Group plc
(LSE:BT.A)
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Rating:69Neutral
Price Target:
237.00 p
▲(8.94% Upside)
Action:Reiterated
Date:12/07/25
BT Group's overall stock score is driven by solid financial performance and positive corporate events, which are offset by technical analysis indicating weak momentum. The earnings call provided positive guidance, supporting the company's strategic initiatives. Valuation metrics suggest fair pricing with an attractive dividend yield.
Positive Factors
Cash generation & Free Cash Flow
Consistent strong operating cash flow and improved free cash flow provide durable funding for fiber and 5G capital expenditure, support dividends and deleveraging, and reduce reliance on external financing. This enhances long-term strategic optionality and financial resilience.
Negative Factors
Declining revenue trend
Persistent revenue decline signals structural demand challenges and market saturation in legacy products. Even with margin gains, slower top-line growth constrains absolute EBITDA expansion, limits reinvestment capacity, and raises dependency on cost cuts to hit targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & Free Cash Flow
Consistent strong operating cash flow and improved free cash flow provide durable funding for fiber and 5G capital expenditure, support dividends and deleveraging, and reduce reliance on external financing. This enhances long-term strategic optionality and financial resilience.
Read all positive factors
BT Group plc (BT.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£20.34B
Dividend Yield4.42%
Average Volume (3M)19.22M
Price to Earnings (P/E)69.5
Beta (1Y)0.61
Revenue Growth-3.55%
EPS Growth1.67%
CountryUK
Employees91,700
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding9,967,640,000
10 Day Avg. Volume15,844,759
30 Day Avg. Volume19,219,665
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)0.87
Price to Sales (P/S)0.52
P/FCF Ratio11.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£184.00Price Target Upside-15.42% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.18
Revenue Forecast (FY)£19.26B
BT Group plc Business Overview & Revenue Model
Company Description
BT 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 o...
How the Company Makes Money
BT Group makes money primarily by selling connectivity and communications services under recurring subscription and usage-based pricing, plus wholesale access charges and equipment/service fees. Key revenue streams typically include: (1) Consumer ...
BT Group plc Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented strong operational and strategic progress: record Openreach build and connections, clear transformation delivery ahead of plan, improved customer satisfaction and a credible path to higher normalized free cash flow (GBP 2bn in FY27 and GBP 3bn by FY30). At the same time the group faces near-term revenue and legacy headwinds (equipment decline, PSTN-related voice drag, International pressures), modest margin impacts in Consumer and Business, and some pension and working-capital sensitivities. Management reconfirmed guidance, increased the dividend modestly and extended transformation to provide additional confidence in medium-term targets.Positive Updates
Record Openreach build and connections
Openreach built a record 4.8 million homes and businesses in the year (including 1.5 million in Q4), has passed ~23 million premises and is on track to reach 25 million by end of the calendar year; 9 million premises passed in the last 2 years and record 2.2 million customer connections (now >9 million customers, 39% take-up).
Negative Updates
Group revenue decline and equipment weakness
Adjusted revenue declined ~4% year-on-year to GBP 19.6bn, driven principally by lower equipment sales and international divestments.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Openreach build and connections
Openreach built a record 4.8 million homes and businesses in the year (including 1.5 million in Q4), has passed ~23 million premises and is on track to reach 25 million by end of the calendar year; 9 million premises passed in the last 2 years and record 2.2 million customer connections (now >9 million customers, 39% take-up).
Read all positive updates
Company Guidance
The Group reiterated clear near‑ and medium‑term guidance: for FY‑27 total revenue of about £19.0–19.5bn, U.K. service revenue £15.1–15.4bn, adjusted EBITDA £8.2–8.3bn, accounting CapEx ~£4.3bn and normalized free cash flow of £2.0bn (up from £1.5bn in FY‑26), with a path to £3.0bn normalized FCF by FY‑30. Management extended the transformation to deliver £3.7bn gross savings (cost to achieve £1.4bn) within a FY‑25–FY‑30 window (remaining £2.2bn of savings, ~¾ in FY‑27/28), expects total labor (incl. subcontractors) to fall to 75–80k by FY‑30, and plans restructuring costs of ~£200m p.a. in the next two years (then ~£100m). Openreach targets 25m premises passed by year‑end (build cost ~£300/home), >50% of broadband customers on full fiber this year, line losses ~800k, and reiterated dividend growth of low‑to‑mid single digits per annum until BBB+ metrics are reached.BT Group plc Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.36B | 20.36B | 20.68B | 20.85B | 21.33B | 22.91B |
| Gross Profit | 9.54B | 14.99B | 15.17B | 13.78B | 13.80B | 15.72B |
| EBITDA | 7.36B | 7.27B | 7.47B | 7.23B | 6.88B | 7.55B |
| Net Income | 1.05B | 1.05B | 1.91B | 1.27B | 1.47B | 1.73B |
Balance Sheet | ||||||
| Total Assets | 50.98B | 50.98B | 52.75B | 49.77B | 50.88B | 53.07B |
| Cash, Cash Equivalents and Short-Term Investments | 2.81B | 2.81B | 3.94B | 3.46B | 4.65B | 6.60B |
| Total Debt | 23.33B | 23.33B | 23.88B | 21.95B | 22.84B | 25.89B |
| Total Liabilities | 38.07B | 38.07B | 38.24B | 34.48B | 39.20B | 38.30B |
| Stockholders Equity | 12.91B | 12.91B | 14.51B | 15.30B | 11.68B | 14.76B |
Cash Flow | ||||||
| Free Cash Flow | 2.05B | 2.05B | 1.42B | 1.30B | 1.06B | 2.17B |
| Operating Cash Flow | 6.99B | 6.99B | 6.72B | 5.91B | 5.96B | 6.27B |
| Investing Cash Flow | -5.01B | -5.01B | -6.40B | -3.56B | -3.24B | -5.65B |
| Financing Cash Flow | -2.11B | -2.11B | -636.00M | -2.56B | -3.22B | -807.00M |
BT Group plc Technical Analysis
Negative
217.55
Price Trends
218.85
Negative
208.50
Positive
198.00
Positive
Market Momentum
-1.14
Positive
37.51
Neutral
11.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BT.A, the sentiment is Negative. The current price of 217.55 is below the 20-day moving average (MA) of 225.22, below the 50-day MA of 218.85, and above the 200-day MA of 198.00, indicating a neutral trend. The MACD of -1.14 indicates Positive momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BT.A.
BT Group plc Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | £868.98M | 18.17 | 13.14% | 2.23% | 11.46% | -3.50% | |
69 Neutral | £20.34B | 69.50 | 2.32% | 4.42% | -3.55% | 1.67% | |
69 Neutral | £12.86B | 25.64 | 23.75% | 1.50% | 23.19% | 196.37% | |
62 Neutral | £2.45B | 57.65 | 115.68% | ― | 4.56% | 17.21% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | £25.65B | -72.65 | -0.79% | 3.74% | 11.08% | 87.73% | |
57 Neutral | £4.19B | -44.09 | -35.13% | ― | ― | ― |
* Communication Services Sector Average
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BT Group plc Corporate Events
Regulatory Filings and Compliance
BT Group Updates Total Voting Rights for April 2026
Neutral
Apr 30, 2026
BT Group plc reported that as of 30 April 2026 its issued share capital comprised 9,968,127,681 ordinary shares, of which 487,815 were held in treasury, leaving 9,967,639,866 ordinary shares carrying voting rights. The disclosed total voting right...
Business Operations and StrategyExecutive/Board Changes
BT Group Chair Adam Crozier to Become Experian’s Next Chairman While Retaining BT Role
Positive
Apr 21, 2026
BT Group said its chairman, Adam Crozier, has been appointed to the board of Experian as an independent non-executive director and chair designate from 12 May 2026, and will assume the role of chair following Experian’s annual general meetin...
Regulatory Filings and Compliance
BT Group Updates Total Voting Rights for March 2026
Neutral
Mar 31, 2026
BT Group plc reported that as of 31 March 2026 its issued share capital comprised 9,968,127,681 ordinary shares, of which 487,815 were held in treasury, leaving 9,967,639,866 shares carrying voting rights. The updated voting rights figure provides...
Regulatory Filings and Compliance
BT Group Director Ruth Cairnie Buys Shares in Board-Dealing Disclosure
Positive
Mar 30, 2026
BT Group plc disclosed a director dealing transaction involving independent non-executive director Ruth Cairnie, in line with market abuse regulation reporting requirements. The filing states that Cairnie purchased 5,000 ordinary BT Group shares a...
Regulatory Filings and Compliance
BT Group Updates Total Voting Rights for Shareholders
Neutral
Feb 27, 2026
BT Group has reported that as of 27 February 2026 its issued share capital comprised 9,968,127,681 ordinary shares, of which 487,815 are held in treasury and do not carry voting rights. This leaves a total of 9,967,639,866 voting rights in the com...
Regulatory Filings and Compliance
BT Group Executives Reinvest Dividends Into Company Shares
Neutral
Feb 13, 2026
BT Group has disclosed a series of share transactions by senior executives, including CEO International Bas Burger, Group General Counsel and Company Secretary Sabine Chalmers, Chief Security and Networks Officer Greg McCall and Chief People Cult...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
BT Group reports director share purchase and lapse of executive award
Neutral
Feb 11, 2026
BT Group has disclosed director dealings showing that independent non-executive director Sara Weller purchased 5,932 ordinary BT shares at £2.01 each on 10 February 2026 in London. The transaction modestly increases insider ownership and may ...
Business Operations and StrategyExecutive/Board Changes
BT Group Reshapes Leadership at Openreach and International Units
Positive
Feb 10, 2026
BT Group has announced a leadership reshuffle across its Openreach and International units, with current Openreach Deputy CEO Katie Milligan set to become CEO of Openreach on 1 April 2026 and current Openreach chief Clive Selley moving to lead BT ...
Business Operations and StrategyFinancial Disclosures
BT Group Posts Record Full Fibre Take-Up as Revenue Softens but Guidance Holds
Neutral
Feb 5, 2026
BT Group reported continued progress on its UK network and customer strategy, with its full fibre footprint extended to 21.4 million premises, including 5.9 million in rural areas, and record FTTP connections pushing Openreach’s take-up rate...
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.