Sector movers: BT lifts telecoms higher

By Benjamin Chiou

Date: Friday 03 Feb 2012

Telecoms giant BT Group was lifting the fixed line telecommunications sector on Friday afternoon following its well-received third quarter results announced this morning.

BT saw pre-tax profits rise from £441m last year to £652m in the three months to December 31st. Over the first three quarters, pre-tax profits totalled £4,455m, up 18% on the previous year.

Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 3% to £1,524m in the third quarter. According to broker Nomura, this was some 1.6% ahead of consensus estimates. Nine-month EBITDA were 3% higher than last year at £4,455m.

"We have delivered another quarter of growth in profits and cash flow despite the economic headwinds," said Chief Executive Ian Livingston.

Livingston revealed that BT now expects to achieve its EBITDA target of above £6,000m this year, rather than in 2013. Nomura said that "with consensus already sitting at £6.01bn for FY 12, we expect marginal upgrades to at least reflect the robust trading performance."

Cable & Wireless Worldwide and Carphone Warehouse were also on the rise in the sector.

BC

Top performing sectors so far today
Fixed Line Telecommunications 2,420.20 +3.01%
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Mobile Telecommunications 4,041.81 +2.40%
Insurance (non-life) 1,429.64 +2.39%

Bottom performing sectors so far today
Health Care Equipment & Services 3,597.25 -0.27%
Industrial Transportation 2,332.70 -0.19%
Oil Equipment, Services & Distribution 24,350.25 -0.04%

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