Briefly –
- BTC share plunged to the lowest mark since March.
- There are worries about the firm’s margins and growth.
- Workers continue to pressure the management for improved wages.
BT Group’s share price declined to its lowest regions since 7 March 2022 as investors contemplated the firm’s business. The stock slipped towards the 160p low – around 21% beneath the highest mark this year. And that meant the company traversed a bear market.
BT Group’s Slowing Growth
BT Group is a top telecommunication company that offers services in the United Kingdom. It delivers telecom services to companies and individuals. Also, it’s a leading fiber services provider via its Openreach brand.
BT remained in the spotlight over the last few months. First and foremost, British watchdogs are analyzing Patrick Drahi’s holdings, a French billionaire with the leading stock in the company, boasting an 18% share of BT Group. It remains unclear why authorities are assessing his stake, but analysts trust it’s to prevent the firm’s bid.
Secondly, the Financial Reporting Council fined PwC 1.75M pounds. The fine was because of a 2017 case when BT’s Spain subsidiary committed a crime. Consequently, BT had to revise its year repost, adjusting it by around 513M pounds.
Meanwhile, threats remain as BT workers might strike soon. Over 40,000 workers struck in July. Moreover, its Openreach employees are about to strike, seeking better pay and improved working conditions.
BT announced its quarterly earnings recently. The company’s revenue gained 1% to 5.1 billion pounds, helped by somewhat higher prices.
BT’s adjusted EBITDA surged 2% to 1.9 billion pounds, whereas the profit before tax lost 10% to 0.5 billion pounds. Increased depreciation triggered this decline. Capital expenditure hit 1.3 billion pounds, a 17% drop, due to the previous year’s investment scale.
BT Share Price Prediction
The 24hr chart indicates that BT stock price printed a symmetrical triangle formation between 7 March and July. Meanwhile, this month catalyzed a bearish breakout and declined to monthly lows.
The stock plunged beneath the 25 and 50 moving averages. The MACD moved beneath the neutral level, whereas the RSI (Relative Strength Index) swayed into the oversold region. Thus, the BT share might continue plummeting, with sellers targeting the 135p support.