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This Morning’s Winner: BT Group plc Posts Strong Results

BTBT Group (LSE: BT-A) (NYSE: BT.US) was one of the FTSE 100 winners in early trade this morning, lifting 3.5% following fourth quarter and full-year results to 31 March 2014.

Hark back to a year ago and you would have found many commentators concerned over BT’s foray into sports coverage, but the numbers don’t lie as the proposition helped the group deliver a record 9% growth in Q4 revenue for the BT Consumer division. Chief executive Gavin Patterson also noted the “excellent 79% share of broadband market net additions in the quarter”.

Away from the UK, BT Global delivered “a 9% increase in its order intake this year and continued to see double-digit revenue increases in the high-growth regions of the world”, according to Patterson, who stated that the group’s cost-transformation programmes are helping to drive BT’s strong cash flow.

Across the group as a whole, underlying revenue increased by 1.2% in the fourth quarter, which helped contribute to a full-year rise of 0.5%, beating market expectations as a result. Adjusted pre-tax profit performed well, too — lifting 9% in Q4 and 6% for FY2014 — leading to adjusted earnings per share increasing by 7% for the full year.

BT shareholders will be delighted with double-digit growth in the full year dividend as well, a proposed increase of 15% contributing to an expected 10.9p dividend, putting the company on a forecast yield of 3.3%. What’s more, BT expects to continue increasing its dividend by 10-15% for each of the next two years, which has caused many income investors to come flocking to the stock.

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Sam does not own shares in BT.