Eyes Down for BT Group plc (ADR) (BT)’s Results

LONDON — BT Group plc (ADR) (NYSE:BT) is due to announce its annual results on Friday, May 10.

BT Group plc (ADR) (NYSE:BT)Shares in Britain’s leading fixed-line telecoms company have out-performed the FTSE 100 over the past 12 months, having risen 31% compared with a 12% rise for the index.

How will BT Group plc (ADR) (NYSE:BT)’s businesses have performed in 2012/13 compared with the previous year? And will the results justify the strong performance of the shares? Here’s your cut-out-and-check results table!

Metric FY 2011/12 Forecast FY
Revenue 18.9 billion pounds 18.2 billion pounds (3.7%)
Adjusted pre-tax profit 2.42 billion pounds 2.53 billion pounds (4.5%)
Adjusted earnings per share 23.7 pence 25 pence (5.5%)
Dividend per share 8.3 pence 9.5 pence (14.5%)
Normalized free cash flow 2.3 billion pounds approximately 2.3 billion pounds 0%

Sales and profit
BT Group plc (ADR) (NYSE:BT) has guided on modestly lower revenue for the full year and the analyst consensus is for a decline of a bit less than 4%.

Despite the contraction at the top line, adjusted pre-tax profit and EPS are forecast to rise by around 5%. On the face of it, the analyst consensus appears a little stingy: At the nine-month stage, BT Group plc (ADR) (NYSE:BT) reported adjusted pre-tax profit of 1.86 billion pounds (+7.5%) and EPS of 18.4 pence (+8.9%).

Cash flow
In the outlook statement within last year’s results, BT Group plc (ADR) (NYSE:BT) said it expected normalized free cash flow (which excludes pension deficit payments and related tax credits) to be “broadly level” with the 2.3 billion pounds generated in 2011/12.

Free cash flow has been trailing the 2011/12 numbers so far, but BT Group plc (ADR) (NYSE:BT) has announced no change to guidance for the full year, so keep an eye out for a number in the area of 2.3 billion pounds.