A BT Group Plc logo at an EE/BT Group Plc store in London, Britain, on Wednesday May 17, 2023.
Hollie Adams | Bloomberg | Getty Images
LONDON – Shares of BT Group The price rose sharply on Thursday after the corporate announced it was targeting further 3 billion kilos ($3.8 billion) in cost savings.
BT shares rose 14.9% at 12.40pm London time after CEO Allison Kirkby said the corporate had passed the height of capital spending on fiber broadband expansion and its £3bn cost and repair transformation programme Completed “a year earlier than planned”.
This has allowed BT to set a brand new goal of doubling its money flow over the following five years and increasing its full-year 2024 dividend by 3.9% to eight pence per share, Kirkby said in a press release.
BT reported revenue of £20.8 billion for the 12 months to March, up barely from £20.7 billion a 12 months earlier. However, profit after tax fell 55% year-on-year to £855m.
The company is now targeting an additional £3bn of cost savings by the top of full 12 months 2029.
“As we enter the next phase of BT Group’s transformation, we are sharpening our focus on being better for our customers and the country by accelerating the modernization of our operations and exploring options to optimize our global business,” Kirkby said.
BT desires to simplify the business as a part of the following phase of its transformation program. By accelerating the modernization of its operations, BT hopes to be “well positioned to generate significant growth for all our stakeholders,” Kirkby said.
She took over the position of CEO initially of February, replacing Philip Jansen.
BT announced last 12 months that it planned to chop between 40,000 and 55,000 jobs by 2030, representing a headcount reduction of 31% to 42%.
At the time, Jansen said in a press release that “BT Group will rely on a much smaller workforce and significantly reduced costs by the end of the 2020s as we continue to build and network furiously, digitize the way we work and simplify our structure.” “
