BT Group plc (ADR) (NYSE:BT), which is scheduled to announced second-quarter earnings Nov 1, may shatter its sales estimates for current year as European corporate clients cut back on services from the United Kingdom’s biggest fixed-line phone corporation.
A person with knowledge about the matter, who refused to be identified before the results stated that an unfavorable regulatory pricing decision, which will lower wholesale revenue, will also affect sales.
BT earlier anticipated underlying revenue expansion to improve in fiscal years finishing March 2013 and 2014.
CEO of BT Group Ian Livingston reported in July that the corporate phone market in Europe is worsening and reported BT would target more business in Asia, Latin America and the Middle East.
London-based BT fell almost 1.6% to settle at 213.70 pence in London trading session and was down 1.3% as of 10:59 AM. Shares of the company surged 14% current year through Oct 26, surpassing the 4.2% boost of the United Kingdom benchmark FTSE 100 index.
A spokesperson BT Dan Thomas refused to remark before the company’s earnings announcement.
Underlying sales will plunge almost 4.3% to 18.5 billion pounds or $30 billion for the year finishing March 2013, as shown in the median analyst forecasts gathered by Bloomberg. BT announced a 1.9% sales decline in fiscal 2012.
BT Group plc (ADR) (NYSE:BT) has market capitalization of 27.43 billion and offered 112.51% Return on equity. The company’s institutional ownership was 1.34% while its price to earnings ratio was 8.58. Company’s net profit margin was 11.11%. Beta factor was 1.30. The Beta factor, which is used as a measure of a company’s volatility in relation to the market, was 0.96 while the PEG ratio of the company was 1.57.
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