The share price of BT (LON: BT) gained by 7 percent in early trading despite showing a 8 percent decline in revenue and 5 percent fall in profit.
Half-year profit on an adjusted EBITDA basis came in at £3.7bn as declines in BT sport and enterprise revenue were hit.
However, the market appeared to take comfort in a more bullish tone from BT as to where it was heading.
The company announced that its ‘modernisation’ programme is firmly on track and delivered £352m of savings in the half year. Likewise it noted the quality of its services and products is improving which has given it the confidence to increase its EBITDA expectations in the coming years:
“This performance has given us confidence to raise the lower end of our EBITDA outlook range for this year and publish an EBITDA expectation of at least £7.9bn for 2022/23, with sustainable growth from this level forward. This growth will be driven by the continued recovery from Covid-19, enhanced by sales of our converged and growth products, and by significant savings from our modernisation and cost saving programme. In combination these factors will more than offset legacy product declines.
The growth in EBITDA underpins the planned reinstatement of our dividend next year whilst ensuring that we can continue to drive value-creating investments in our networks and products.”Philip Jansen, Chief Executive, CEO of BT
The share price of BT is currently trading at around 110p.