BT Directs Attention to the Long Term as Growth Remains Elusive During Fiscal Q2

BT’s fiscal second quarter didn’t include any major surprises, but the firm continues to pepper the market with optimism concerning its longer-term prospects. Management claims that cost efficiencies and experience gained thus far will allow it to deploy fiber 15% more cheaply than previously expected, cutting peak annual capital spending to GBP 4.8 billion from GBP 5 billion over the course of the network buildout. BT also expects the shift to fiber will cut operating expenses by GBP 500 million annually by the end of the decade, while general ongoing efforts to cut costs deliver an incremental GBP 1 billion in reductions by fiscal 2024, a year earlier than planned. With confidence in the fiber buildout and the ability to increase prices on inflation-linked services as much as 7%-8% next year, BT also reinstated its dividend payout.