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BT Group PLC - Stock Quote BT.A

Rating as of

Morningstar's BT Group PLC Stock Analysis

Valuation
Currency in GBX
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Relaunching Our Coverage of BT With Narrow Moat and GBX 230 FVE; Openreach Main Driver of Valuation

Javier Correonero Equity Analyst

Business Strategy and Outlook

| Javier Correonero |

BT Group’s strategy is to own the best and most far-reaching wholesale fixed-line network (Openreach) in the U.K. to attract as many service providers as possible. Years of regulatory discussions and tensions caused BT to severely underinvest as it sought a regulatory framework that ensured acceptable returns on capital. The approval of the Equinox plan, which sets wholesale pricing for communication providers in Openreach’s network for the next 10 years, seems satisfactory for BT and has caused fiber-to-the-home, or FTTH, investments to soar. BT will deploy more than 4 million FTTH lines per year until 2026, covering around 90% of the U.K., up from less than 10% in 2019. Openreach’s network will likely be the only available option for more than 40% of U.K. households (Virgin’s network only covers 16 million households and CityFibre aims for 8 million in 2025).

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BT Group PLC's Company Profile

Business Description

BT Group is the incumbent telecommunications operator in the U.K. It is the owner of Openreach, the largest fixed-line network in the U.K. Openreach operates as a separate entity due to regulatory requirements but is still 100% owned by BT. Since 2020 Openreach has accelerated its fiber investments and expects to have 90% of the U.K. covered with FTTH by 2026. In the consumer division, BT has approximately 30% market share in broadband and mobile services. The enterprise segment serves large corporations while the global services division provides communications consultancy services.

Contact
1 Braham Street, BT Centre
London, E1 8EE, United Kingdom
T +44 2073565000
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Mar 31, 2018
Fiscal Year End Mar 31, 2022
Stock Type
Employees 101,207