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BT will cut 13,000 jobs over the next three years



BT Group Plc lost most in 15 months after the company said it would cut revenues and maintain a flat dividend, along with a comprehensive policy refresh to address the uncertainties that weighed on the stock.

The former telephone monopoly fell even 9.6 percent after it was forecasted that underlying sales would fall 2 percent in the next fiscal year and adjusted profits at least 1.3 percent below the 7.5 billion pounds (10 billion US dollars), which will be reported on Thursday for the full year. 19659002] "We can see the regulatory pricing pressure and from 2021 we can see that Ebitda is growing again," said Chief Executive Officer Gavin Patterson in an interview with Bloomberg TV on earnings before interest, taxes, depreciation and amortization. On the dividend, he said: "We also signal to the market that we think it will remain unchanged for the next two years."

Shares Droped 6.9 Percent to 222 Pence from 8:1

6 am in London

The torrent of press releases released by BT on Thursday morning next to fourth quarter and full year results According to expectations, Patterson had a busy year of review as he was battling for BT cash on all sides, hoping to recover from a balance sheet scandal in Italy and an unexpectedly high profit warning in early 2017.

BT said it would pay £ 2.1 billion to $ 11.3 billion over the next three years. Pound pension deficit, reveals the results of a long-awaited review with trustees. She also said it would reduce 13,000 back-office and middle-management jobs but hire 6,000 workers in network deployment and customer service.

Patterson must tackle the pension deficit to find out how much cash BT will have to spend on other priorities Increasing the amount of fiber in its national network and ongoing dividend payments. The result is in line with the expectations of analysts who, according to Morgan Stanley, predicted that the deficit could range from 10 to 12 billion pounds.

BT's 13,000 job cuts stand against Thursday's announcement on more than 6,000 analysts' forecasts and will come at a cost of £ 800 million. It will pay out a final dividend of 10.55 pence per share, so that the dividend for the full year remains unchanged compared to the previous year at 15.4 pence. That's less than the 15.7 pence forecast, according to data collected by Bloomberg.

Adjusted earnings before interest, taxes, depreciation and amortization rose 1 percent in the fourth quarter to 2.08 billion pounds, which is the median estimate of five analysts analyzed by Bloomberg.


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