BT's credibility is still very much on the line | Nils Pratley
As it cuts 13,000 jobs, the telecoms giant needs to regain investors’ confidence
The humbling of BT in two short years has been extraordinary. Back in May 2016, the chief executive, Gavin Patterson, was hailing the “landmark” acquisition of mobile operator EE; was reporting the strongest revenues for seven years; and was promising that a dividend that had just been raised by 13% could be juiced by a further 10%-plus in each of the next two years.
And now? EE still looks a good purchase but group revenues are falling again and BT has been forced into a huge restructuring programme that will see 13,000 jobs cut. The old dividend promise had already been exposed as hubristic. BT managed a 10% boost a year ago but a flat payment this year is now seen a semi-triumph or, in the sceptics’ view, an unaffordable luxury. The share price, down 7% on Thursday, stands at a five-year low.
Source: The Guardian