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Shares in telecom giant BT Group (BT.A) are topping the UK 100 this morning after investors welcomed an upbeat consensus-beating Q3 report card showing profits +14% on demand for its fiber-optic broadband services and which allowed management to reiterate FY 15/16 guidance. Growth is the strongest in several years, helped by the consumer division which is benefiting from costly European football rights. Hurdles remain, however. From a product angle, the battle for market share in internet, telecoms and pay-for-TV is rife with rivals like Vodafone. Orange, Sky. Regulator and politicians are also sticking their oars in with calls for more competition, unhappy at the prospect of less UK mobile operators (02’s buying Three) and desire to free up access to BT’s infrastructure to boost business and consumer internet coverage and pricing competition. From a technical standpoint, the shares are very close to November 15yr highs of 502.6p which could limit near-term upside.
Mike van Dulken, Head of Research
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
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