Investors have been sceptical about BT’s ability to manage the competing demands on its capital — a weaker guide on the cashflows the company expects to generate this year indicates that caution is well placed.
The telecoms giant is pushing ahead with the rollout of BT Openreach’s full-fibre broadband network, which the FTSE 100 company has said will cost £5 billion, up from £4.8 billion. A tax refund of £200 million will plug some of the extra cost, but not all. The result? Free cashflow, before pension deficit payments, will be at the lower end of the £1.3 billion to £1.5 billion range guided towards this year.
Adjusted profit guidance for the 12 months to the end of March next year has been maintained at
