BT shares hit decade low as live sport halts

BT SHARES sank to their lowest level in more than a decade after it took a £385m hit to sales in the three months to the end of June.

The pandemic curtailed live sport, closed retail outlets and led to fewer customers using roaming data, which sent revenue down 7pc to £5.25bn and sliced 13pc off pre-tax profit to £561m.

Philip Jansen, chief executive, said BT had delivered a “relatively resilient” set of results: “Although uncertainties remain, we are now able to provide an outlook for this financial year.”

BT said revenue from both residential customers and pubs declined during the period due to the lack of sporting fixtures, citing the suspension of events such as the Premier League.

It invested further in its network nationwide as capital expenditure remained steady at £927m.

Investment in its network was up 2pc to £526m. BT is planning a £12bn spending spree on new fibre.

“Based on current expectations, we expect to return the business to sustainable adjusted [profit] growth,” the company said.

It said the cost of ripping Huawei out of its networks would be about £500m. It added that the further tightening of the Government’s stance in July, which will see a full ban on Huawei kit in the UK’S 5G and fibre networks by 2027, could be “absorbed” within its earlier estimates.

Mr Jansen said the updated restrictions on Huawei kit gave BT time to “refresh the whole estate over the next four years”.

Shares closed 8.6pc lower at 98.5p. It was last under £1 in June 2009.