The BT Group Plc logo is seen on an EE/BT Group Plc store in London, England, Wednesday, May 17, 2023.
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London – Stocks BT Group Shares surged on Thursday after the company announced a target of further cost savings of 3 billion pounds ($3.8 billion).
At 12:40 pm London time, BT CEO Allison Kirkby said the company had passed peak capital expenditure on fiber broadband deployment and was achieving it “a year ahead of schedule” The company’s shares rose 14.9% amid a £3 billion cost and service transformation plan.
Kirkby said in a statement that this allowed BT to set a new target of doubling cash flow over the next five years and increase its full-year dividend by 3.9% to 8p per share in 2024.
BT reported revenue of 20.8 billion pounds ($26.3 billion) for the year to March, up slightly from 20.7 billion pounds the previous year. However, the company’s profit after tax fell 55% on the previous year to £855m.
The company is now targeting a further £3 billion in cost savings by the end of 2029.
Kirkby said: “As we enter the next stage of BT Group’s transformation, we will be even more focused on delivering better services to our customers and countries, accelerating the modernization of our operations and exploring ways to optimize our global business. plan.
BT is looking to simplify the company as part of the next phase of its transformation plan. Kirkby said that by accelerating the modernization of its operations, the company hopes to “deliver significant growth to all stakeholders.”
She succeeded Philip Jansen as CEO in early February.
British Telecom announced last year that it plans to lay off 40,000 to 55,000 people in 2030, reducing the number of employees by 31% to 42%.
At the time, Jensen said in a statement: “By continuing to build and connect like crazy, digitizing the way we work and simplifying our structures, by the end of the 2020s the BT Group will be working with a smaller workforce and significantly lower costs. Cost basis.
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