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BT Group Q1 Pre-tax Profit Down 13%

BT Group plc (BT_A.L,BT) reported that its first-quarter profit before tax was 561 million pounds, down 13% from last year, due to reduced EBITDA, higher interest expense, and higher depreciation and amortisation charges; partly offset by the gain on disposal of Spanish operations.

Profit after tax was 448 million pounds down from 505 million pounds in the prior year.

Quarterly revenue was 5.248 billion pounds, down 7% from the previous year primarily due to the impact of Covid-19, including reduced BT Sport revenue and a reduction in business activity in enterprise units.

The company said that Covid-19 will continue to impact its business as the full economic consequences unfold and as a result it expects adjusted revenue to be down between 5% and 6% in 2020/21, and adjusted EBITDA to outturn between 7.2 billion pounds and 7.5 billion pounds.

The company expects reported capex for this year to increase to between 4.0 billion pounds and 4.3 billion pounds. It expects this to result in normalised free cash flow in a range of 1.2 billion pounds to 1.5 billion pounds.

BT Group said it has appointed Rob Shuter as chief executive officer of its Enterprise unit and as a member of BT's Executive Committee. Rob is expected to join by the end of the 2020/21 financial year.

Rob is currently Group President and CEO at MTN Group, Africa's leading mobile telecommunications company. Before joining to MTN, he served as CEO of Vodafone's European Cluster as well as being CEO of Vodafone Netherlands.

Gerry McQuade, the current CEO of BT Enterprise, will be retiring from BT. Gerry has spent more than 12 years at EE and then BT, initially joining BT as the CEO of Wholesale and Ventures before moving on to lead the integration of that unit with Business and Public Sector to form the combined Enterprise business in 2018.

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