The Surprising Buy Case For BT Group plc

Royston Wild looks at a little-known share price catalyst for BT Group plc (LON: BT-A).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Today I am looking at why, despite a relatively slow start in terms of viewership, BT Group’s (LSE: BT-A) (NYSE: BT.US) new sports channels have helped deliver a stunning boost to the company’s television arm.

Sports packages boost TV grab

BT Group has shelled out a fortune in order to furnish its recently launched sports channels with live Barclays Premier League action. But despite this, the company has made a relatively subdued start in its quest to upset sports channel behemoth British Sky Broadcasting (Sky). Just this week, The Telegraph published figures showing that viewing figures of top-flight games were down 10% from those shown on BSkyB rival ESPN at the same point last year.

However, the somewhat unspectacular start of the company’s BT Sport and ESPN offerings fail to reveal the positive impact of the channel roll-outs on the uptake of its television services on the whole, as recent research by Liberum Capital has revealed.

Should you invest £1,000 in BT right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BT made the list?

See the 6 stocks

The broker advised in its latest quarterly update last month that the launch of BT’s sports packages in August has helped to boost the popularity of the firm’s entire TV division in the pay-TV market. BT “has benefitted from its aggressive promotional stance and higher media profile as a greater proportion of respondents have indicated they have and will consider switching“, Liberum Capital said.

Respondents with some type of pay-TV subscription rose by 2 basis points in July-September, Liberum Capital said. But while BT saw its customer base increase during the period, both Sky and Virgin Media reported falls in viewer numbers.

The broker said that the impact of costs on paying customers’ buying habits, as clients wrestle with rising household bills, had a huge impact upon the responses of its participants. In this respect, BT has played a masterstroke by offering its sports channels free to all of its broadband customers on top of other promotions to take on the might of Sky.

In addition to this, the quality of all-round packages is also cited as a major driver behind customer selections in the TV space. Not only has BT spent huge sums to nurture bolster its television services, but it has also seen capital expenditure go through the roof by laying new broadband fibre across the country. The firm is set to spend a further £2.5bn on this drive alone this year, leaving the firm in great shape to benefit from the rising popularity of multi-service bundle providers.

Should you buy BT now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Royston does not own shares in any of the companies mentioned in this article. The Motley Fool has recommended shares in British Sky Broadcasting.

More on Investing Articles

Investing Articles

Up 30% in weeks, does the BAE Systems share price still offer value?

The BAE Systems share price has been on a tear over the past couple of months. This writer sees limited…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Hunting for shares to buy as the market trembles? Remember this!

After a choppy week in global stock markets, our writer goes back to basics in his hunt for bargain shares…

Read more »

Investing Articles

3 simple principles to help build wealth in an ISA

As a new tax year opens up new ISA allowances for many investors, our writer shares a trio of things…

Read more »

Investing Articles

US trade tariffs: what they could mean for UK shares like Ashtead, Compass Group, and Experian

US trade tariffs continue to rock global markets, and the UK is no exception. Our writer considers how a new…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Dividend Shares

The Trump slump has smashed these FTSE 100 shares!

After a rough week for US and UK shares, investors have been shaken. But now these FTSE 100 stocks have…

Read more »

Investing Articles

£10,000 invested in Rolls-Royce shares 5 years ago is now worth…

Rolls-Royce shares have been on fire since April 2020. Part of this is the result of pandemic restrictions lifting, but…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

£10,000 invested in Tesla stock at its peak in 2024 is now worth…

Over the last few months, Tesla stock has lost nearly half its value. Here, Edward Sheldon explores a few takeaways…

Read more »

Investing Articles

Is the S&P 500 heading for an epic stock market crash?

Our writer shares his thoughts on a very crazy time for the S&P 500 and the wider stock market. How…

Read more »