BT Group Plc (BT, BT_A.L) Friday reported a decline in fourth-quarter profit, reflecting restructuring and certain specific charges as well as lower revenues. The British telecom giant, however, proposed a higher final dividend and said it continues to expect to increase dividend per share by 10 to 15 percent per year for the next two years.
The shares were trading up about 9 percent in the morning trade on the London Stock Exchange.
The company said it continues to expect an improved trend in underlying revenue, excluding transit in 2013/14, compared with last year, and expects adjusted EBITDA to be 6.0 billion- 6.1 billion pounds in fiscal 2014. BT Group expects the next phase of its restructuring programme to reduce cost base by about 200 million pounds per year.
The firm also anticipates spending around 300 million pounds per year for the next two years to buy back shares.
In the fourth quarter, the company's profit before tax declined to 687 million pounds from 724 million pounds in the previous year. Excluding specific items, pre-tax profit was 833 million pounds in the recent fourth quarter.
Certain specific items in the recent quarter resulted in a net charge after tax of 58 million pounds, while the prior year had a net credit of 107 million pounds. Restructuring charges were 151 million pounds, higher than 14 million pounds a year ago.
Adjusted EBITDA was 1.67 billion pounds, while it was 1.61 billion pounds last year.
On a per share basis, earnings were 7.2 pence, lower than 7.7 pence per share in the prior year. Adjusted earnings were 7.9 pence, while the company posted 6.4 pence per share last year.
Revenues for the quarter dropped 2 percent to 4.79 billion pounds from 4.88 billion pounds in the same quarter last year.
Total operating costs were 4.07 billion pounds, lower that 4.12 billion pounds in the prior year.
For the fiscal year, profit before tax increased to 2.50 billion pounds from 2.45 billion pounds last year. Earnings per share were 25.5 pence, compared to 24.4 pence per share a year ago. Adjusted EBITDA was 6.18 billion pounds in the current year. Annual revenues declined 5 percent to 18.02 billion pounds.
The board is also proposing a final dividend of 6.5 pence peer share, up 14 percent from last year, to shareholders of record on August 9, 2013, payable on September 2. The will make the full-year dividend of 9.5 pence, an increase of 14 percent from last year.
In London, the shares are currently trading at 299.55 pence, up 23.85 pence or 8.65 percent, on a volume of 13.56 million shares.
For comments and feedback: editorial@rttnews.com