BT Group plc (BT.A)

BT share price: company announces chairman’s retirement

The BT share price (LON: BT.A) (BT.L) is trading around 2% higher at the time of writing following news that its chairman plans to retire.

Jan du Plessis has been with the FTSE 100 index (INDEXFTSE: UKX) telecoms company since June 2017. Initially, he was a non-executive director. He became chairman in November 2017.

He plans to retire in 2021, once a successor has been found. The firm now intends to start the process of finding a replacement, which will be led by the Senior Independent Director.

Commenting on his chairmanship, du Plessis said: “BT has made good progress over the last few years. We have a refreshed Board and much-strengthened senior management team delivering on our strategy to transform the company”.

BT’s current CEO Philip Jansen stated: “Jan’s focus on improving customer experiences, investing for the long-term and motivating our colleagues has been consistent throughout his time at BT and with his strong support we now have a clear strategy to deliver in the years ahead”.

Recent performance

The BT share price has fallen by 10% over the past 12 months. This compares to a flat performance from the FTSE 100 index over the same time period.

The company’s most recent financial update was its third quarter trading update, which was released on 4 February. It showed a decline in revenue of 7% for the period, due primarily to the impact of Covid-19 on its consumer business unit, ongoing legacy product declines and divestments of various assets across a number of markets. The firm’s adjusted EBITDA declined by 5%, while its reported profit before tax dropped by 17% versus the same period of the previous year.

In terms of operational developments in the third quarter, BT recorded its highest ever net promoter score (NPS) within its consumer segment. It also stated that its Fibre to the Premises (FTTP) network now reaches 4.1 million premises, and remains on track to reach 4.5 million premises by the end of March 2021.

BT share price figures

Following its decline over the last year, the BT share price trades on a forward price-earnings ratio of 6.8 using forecast earnings per share for the 2021 financial year. Analysts are currently forecasting a 4% rise in the company’s earnings per share next year, with further growth of 7% expected in the 2023 financial year.

Analysts expect BT to recommence dividend payments in the 2022 financial year. The company is forecast to pay a 7.5p dividend per share in 2022, which is due to be covered 2.5 times by net profit according to consensus forecasts. This puts it on a forward dividend yield of around 6%. At the time of writing the company’s share price currently stands at 126p.

Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.