BT fails to spark excitement with latest results

CEO remains ‘excited’ despite discouraging outcome

Article updated: 30 January 2020 12:00pm Author: Graham Spooner


  • Telecoms giant post disappointing results for the third quarter, as it reported a 3% decline in revenue and a 4% fall in core earnings
  • Following yesterday Huawei announcement, group states it is now reviewing the impact of this decision on its guidance and their initial thought is that it will cost it £500mn over the next five years
  • Shares fall by over 7% in early trading following disappointing third quarter results
  • Despite all of this, BT remains on track to meet its expectations for the year
  • Recommendation: With a number of clouds on the horizon, we maintain our ‘Hold’ recommendation for investors willing to accept a medium level of risk

BT shares, which have been a constant underperformer over the past 5 years, are down by over 7% in early morning trading on the back of a third quarter trading update.

The group have stated that, as a result of the recent government decision to give Huawei a role in the UK’s 5g network, they are now reviewing the impact of this decision on group guidance. Their initial thought is that it will cost it £500 million over the next five years. This is due to the company now having to increase its range of supplier in the future.

Group performance over the third quarter was a little below expectations and adjusted earnings at £1.98 billion also came in slightly below analyst expectations. Even so, BT remains on track to meet its expectations for the year.

Despite the CEO being ‘really excited about the long-term prospects’, there are still clearly challenges for the CEO to work on in order for his plans to make BT ‘bolder, smarter and faster’.

All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Graham Spooner portrait photo
Graham Spooner

Investment Research Analyst

Graham started out as a fully authorised dealer on the Stock Exchange trading floor and for various banks, before becoming an FCA-approved investment adviser. Now a respected voice in the media, Graham’s share tips and comments on the markets are frequently sought by the national press.

See what else we have to say