A little like oom really from my point of view - I believe they are the favoured company within their sector and despite the markets - Oftel and the G3 nonsense they will climb back. They pay a divi and this wioll be seen to be increasingly important in the days to come. They have new management and are looking to enhance shareholder value .....

I hold and swing trade a few and not adverse to intraday trading them.

ains


BT in web-based investor relations drive

London, February 7 2003, (netimperative)



by Chris Lake

BT is launching a web-based scheme which it hopes will improve communications with its retail shareholders and help cut costs.


Dubbed 'ShareholderPlus', the system allows investors to sign up and receive BT communications - such as reports, news releases, mandates and, subject to a change in the law, electronic tax vouchers - by email, rather than by post.

BT said this will help it achieve cost savings - by not having to print and despatch reports - and pointed out that it is also good for the environment.

Furthermore, it has negotiated a number of deals with companies such as Virgin Wines, Apollo Travel, RSA and National Car Rental, to market the service and said it will add new offers in the future if it proves to be a success.

BT claims to be one of the first FTSE100 companies to launch such a programme, though it is likely that more will follow.

www.btplc.com/shareholderplus

ATTENTION:


FOLLOWING NOTICE:

DAMAGE TO YOUR HEALTH: http://www.advfn.com/cmn/fbb/thread.php3?id=2877490

Guess it's a little late now .....

LONDON (SHARECAST) - Barclays is expected to post a lacklustre set of full-year results. According to analysts it was hit by the combined impact of high provisions and weak stock markets.

On a brighter note BT is expected to post a 30% rise in third quarter earnings, although analysts are keen to hear about the company's ability to hit growth targets and the state of its pension deficit.

Great expectations and figures from BT ...... CEO has just been on CNBC with the overall comments that given a choice peeps like BT - Investors and customers.

Analysts talk of a must have share - super utility - greater divi expectations

All looks promising and expect the shares to move up significantly ...... Don't see how a limited threat of war in the ME can do much harm


ains


Ben Verwaayen, Chief Executive, commenting on the third quarter results, said:

'These are excellent results. We are achieving our key goals of improving cash
flow, earnings per share and customer satisfaction. These results demonstrate a
substantial increase in profitability, with earnings per share* growth of 71 per
cent.

Revenue growth has been challenging, but we gained real momentum in the
corporate sector, winning a number of major new contracts and our solutions
business achieved record sales orders in the quarter.

We generated our highest ever broadband sales, with in excess of 25,000 per
week in January, launched a major market awareness campaign, reduced wholesale
and retail connection charges and lowered the exchange upgrade trigger levels,
demonstrating our strong commitment to broadband Britain.'

THIRD QUARTER HIGHLIGHTS

Earnings per share* of 4.1 pence, up 71 per cent

Profit before taxation* of 521 million, up 37 per cent

Group turnover* of 4,701 million, up 1 per cent

Net debt reduced by 195 million to 12.9 billion

In January 2003, we received proceeds of 2.6 billion from the sale of our
shareholding in Cegetel to further reduce net debt

Record broadband sales in January, in excess of 25,000 per week; end users
of over 650,000 at February 7, 2003

Further improvements in customer satisfaction


*from continuing activities before goodwill amortisation and exceptional items

Group Finance Director's statement

Ian Livingston, Group Finance Director, commenting on the third quarter results,
said:

'BT's financial position continues to strengthen. Net debt was reduced by 195
million to 12.9 billion. In January net debt has further reduced with the
receipt of the 2.6 billion proceeds from the sale of our shareholding in
Cegetel.

Underlying operating performance is strong with earnings per share* increasing
by 71 per cent over last year to 4.1 pence in the quarter and by 66 per cent to
10.3 pence in the nine months.'



BT tops forecasts
13/02/2003 07:26


LONDON (Reuters) - Dominant telecoms company BT has reported better-than-expected third quarter profit saying it expects to show a pension deficit of up to 1.5 billion pounds for the end of 2002.

Although the pension funding valuation had not yet been completed, BT said on Thursday the companys actuary believed the deficit would be in a range of 1.0 to 1.5 billion pounds -- as falling stock markets erode the value of invested pension money.

Underlying pre-tax profit in the quarter to the end of Decmeber rose 37 percent to 521 million pounds, at the upper end of forecasts. Underlying earnings per share rose to 4.1 pence from 2.4p one year ago, beating expectations, while revenue fell short of forecasts with one percent percent rise to 4.7 billion pounds.

surprised to see the market and some of the media reaction but guess the market is on the down move again ..... I rad the pension situation a little differently and if we are close to the bottom I can see lots of upside when market gets moving northwards

Maybe wrong here but I will hold at current 175p


ains


Thursday, 13 February, 2003, 07:40 GMT
BT warns of pension black hole BBC


BT Group has reported better than expected profits for the final three months of 2002 but warned that its pension fund could be 1.5bn short.
The telecoms company said its pension fund valuation for the end of 2002 had not yet been calculated.

But it said the group's actuary believed it could show a deficit of between 1bn and 1.5bn ($2.4bn).

BT blamed the shortfall on the plunging stock markets, which have eroded the value of pension investments.

The group reported a 37% rise in underlying profits for the final three months of 2002 to 521m.

More soon.

US perspective ....


BT profits from more customers
Thursday, February 13, 2003 Posted: 0900 GMT





LONDON, England -- BT Group on Thursday posted better-than-expected profits for the third quarter as the UK's telecoms operator continued to expand its broadband customer base.

Pre-tax profit for the quarter to December rose 37 percent to 521 million, while revenue edged up 1 percent to 4.7 billion.

BT, which has placed high-speed Internet access at the heart of its strategy for growth, said it had 650,000 broadband subscribers on its network as of February 7, moving towards its target of one million by the middle of this year.

"We see enormous potential for broadband," Chief Executive Ben Verwaayen told CNN. "It is all about profit growth and it is all about doing the best for the customer."

BT's net debt fell 195 million in the third quarter to 12.9 billion. The group said its debt would be further cut in the fourth quarter due to the 2.6 billion sale of its stake in France's Cegetel to Vivendi Universal.

Earnings before interest, tax, depreciation and amortisation grew by 4 million to 1.513 billion.

BT shares were down 3.7 percent to 176.25 pence in early London trading on Thursday.

I think the market has got the pension thingy totally wrong and looking to add a few at this time .....


ains


LONDON (AFX) - Ian Livingston, finance director of BT Group PLC, scaled back investment targets set 18 months ago and attempted to reassure the market on the group's growing pension deficit.
"What we have said for this year is we expect capex now to be about 2.6 bln stg and looking forward we expect it to be somewhere between that number and the 3 bln envelope that we talked about at the beginning for the current financial year," Livingston told reporters.

Regarding the group's widening pension deficit, he said he sees no need to increase the current 200 mln stg annual top-up it is paying into the scheme.

"We have said previously we did not expect the 200 mln a year to change significantly and on the basis of the work the actuary has done to date we have got no reason to change that position," said Livingston.

Earlier BT revealed its pension funds face a potential deficit of more than 1.5 bln stg - nearly 10 times the shortfall it had just three years ago.

BT has been hit by a combination of a huge slump in equity prices and new accounting rules.

At the end of March last year BT had 71 pct of its pension fund assets in equities, then worth 19.2 bln stg. Analysts estimate their value could have fallen by up to 5 bln stg by the year-end.

Ben Verwaayen, BT chief executive, stuck by revenue growth targets for its loss-making business telecom and web hosting division BT Ignite.

He said the Netherlands were the first country in which BT Ignite turned EBITDA positive in the three months to Dec 31 2002.

"If you look to BT Ignite, you see excluding carrier and the business we want to get out of - that is the SME and consumer business - we are growing 7 pct in this quarter under very difficult circumstances.

"So I think that Ignite has enough potential not to change its guidance there," said Verwaayen on the same conference call.

BT has pledged to hit 15 pct revenue compound annual growth rate for 2002-05 at BT Ignite whereas the market sees just 8 pct because it does not expect a recovery in IT and carrier markets.

Livingston said the group has about 500-700 mln stg of non-core assets yet to sell.

Earlier the group said net debt was reduced by 195 mln stg to 12.9 bln stg at Dec 31 2002, but it received 2.6 bln stg from the sale of its stake in Cegetel to Vivendi in January.

The company aims to get its net debt below 10 bln stg.

It also revealed record broadband sales in January, in excess of 25,000 per week, giving it a total customer base of over 650,000 as of Feb 7 2003.

Verwaayen said the group was on track to hit its 6 mln DSL subscribers target by mid-2006. "We are absolutely on target with broadband and you see the momentum growing in the market," he said.

Some analysts view the target as challenging due to to fierce competition from cable operators.

tim.farrand@afxnews.com

Thursday, 13 February, 2003, 10:43 GMT
BT looks to broadband


BT is aiming for 1 million broadband customers

BT has reported slower sales growth for 2002 but says it can drive expansion through its broadband arm which provides high-speed internet access.
BT has placed broadband at the heart of its growth strategy and said it was moving towards its target of one million customers by the middle of this year.


The news came as BT reported a 37% rise in profits for the three months to December 2002, to 521m.

But despite the rise in profits, overall sales growth was lower and the firm's shares fell 3% to 178p in early trade.

The firm also warned that its pension fund could be more than 1.5bn short.

The telecoms company said its pension fund valuation for the end of 2002 would not be calculated until May.

But it said the group's actuary believed it could show a deficit of between 1bn and 1.5bn ($2.4bn).

Topping up

BT blamed the shortfall on the plunging stock markets, which have eroded the value of pension investments.

A spokesman for BT Group told BBC News Online that the company had been investing 200m in its pension fund since 1999 and that this would be enough to make up any shortfall.

"We've said for some time that we're going to put in top-up funds of 200m a year," he said.

"Our actuaries have looked at the scheme and say the 200m will not have to change."

Cashing in

BT reduced its debt in the period by 195m to 12.9bn.

It said this figure would fall significantly when it banked the 2.6bn it received from Vivendi for selling its stake in France's Cegetel.

Vivendi fought off a rival bid from Vodafone to buy BT's 26% stake in the French telecom group, which owns France's second biggest mobile operator SFR.

13 Feb 2003 11:03 GMT



BT hit by pension worries

By Braden Reddall, UK telecoms correspondent
LONDON (Reuters) - BT Group has reported better-than-expected third-quarter profits, but concerns about a yawning pension fund gap and slower sales growth have knocked its shares.

BT bonds improved on the strong cash flow and reduced debt, and some equity analysts said the worries on pensions overshadowed a company poised to start paying higher dividends.

"On balance BT feels a bit cheap to us, but we think there are no catalysts to spur the shares on from today."
Schroder Salomon Smith Barney
BT will announce a revised pension funding deficit in May based on new accounting standards, and analysts' forecasts range as high as five billion pounds. Steep declines in stock markets have eroded the pension funds of many large British companies, including Rolls Royce RR.L and British Airways BAY.L .

For guidance, BT said its actuary believed the end-2002 deficit based on old SSAP 24 accounting standards would be in a range of 1.0 billion to 1.5 billion pounds compared with 200 million pounds at the end of March 2000.

Shares in BT BT.L , with a market capitalisation around 15 billion pounds, fell 4.4 percent to 175 pence in morning trade.

When BT last calculated its funding valuation three years ago, it ended up 800 million pounds more than the SSAP 24 value.

Nomura analyst Chris Alliott said BT's current market value priced in a pension deficit of more than Nomura's worst-case five billion pound estimate, and he repeated a "buy" recommendation on the stock.

BT Finance Director Ian Livingston reiterated that the company did not expect its annual pension deficit payment to be much different from its current 200 million pounds.

"Our actuary has told us that there's nothing to cause that figure to change," he told reporters on a conference call.

Underlying pre-tax profit for the quarter to end-December rose 37 percent to 521 million pounds, at the upper end of forecasts. Underlying earnings per share rose to 4.1 pence from 2.4p one year ago, beating expectations. But revenue fell short of forecasts with a one percent gain to 4.7 billion pounds.

REVENUES FLAT, BUT HIGHER QUALITY

Chief Executive Ben Verwaayen said he had turned his attention to how much profit each pound of revenue generates as BT loses some of its less important lower-margin business.

"Other parts of our revenues are truly important, and the good news here is (that) where it's really important, it's growing," he said.

BT, which has placed high-speed Internet access at the heart of its strategy for growth, said it had 650,000 broadband subscribers on its network as of February 7, moving towards its target of one million by the middle of this year. In January, the company signed up more than 25,000 new users per week.

Net debt fell 195 million pounds in the quarter to 12.9 billion, and the company said it would fall even further in the fourth quarter when it banks the 2.6 billion pounds it received from Vivendi EAUG.PA for its stake in France's Cegetel.

Traders said BT's 7.125 percent euro bond due 2011 GB012368488= was yielding 132 basis points more than the benchmark, improving by four basis points on the day, having initially fallen by 10 basis points.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by just four million pounds to 1.513 billion.

But BT is driving net profit growth by cutting interest payments and making cost cuts that filter down to the bottom line. It aims to hit an annual earnings per share growth target of 25 percent over the next three years.

"On balance BT feels a bit cheap to us, but we think there are no catalysts to spur the shares on from today," Schroder Salomon Smith Barney said in a research note, rating the stock "in line" with the performance of the market.

Concerns about the former monopoly's large pension fund have weighed on its share price recently. Though the stock has outperformed the FTSE 100 by two percent since the start of 2003, the British telecoms sector as a whole has outperformed the same London benchmark index by 10 percent in that period.

starting to recover as analysts start crunching the numbers - US futures marginally +

ains




scotsman

Bright outlook for BT as profits surge 37%

BY SCOTT REID


FORMER telecoms monopoly BT today posted better-than-expected profits for third quarter of the year and said it had dialled up record broadband sales last month.

The telecoms giant, which has undergone major restructuring during the past couple of years as it attempts to slash its debt pile, said underlying pre-tax profit in the three months to the end of December had risen 37 per cent to 521 million, a figure at the upper end of analysts forecasts.

Underlying earnings per share beat expectations by rising to 4.1p from 2.4p a year earlier, but group turnover fell short of forecasts, rising by one per cent to 4.7 billion. Sales at the biggest division, BT Retail, which provides traditional fixed-line telecoms services, rose 4.2 per cent to just over 3.3bn.

BTs chief executive, Ben Verwaayen, described the third quarter figures as "excellent results".

He said revenue growth had been challenging, but claimed to have gained real momentum in the corporate sector, winning a number of major new contracts.

He added: "We are achieving our key goals of improving cash flow, earnings per share and customer satisfaction."

Heavy advertising in the emerging broadband market, which provides customers with a high-speed, permanent connection to the internet, certainly appears to have paid off for BT, as the group said it had generated its highest ever broadband sales, with in excess of 25,000 new connections per week in January.

BT has set a target of five million faster internet access customers by 2006, and will have 650,000 customers as of February 7.

In addition to launching a major market awareness campaign, BT has reduced wholesale and retail connection charges and lowered the exchange upgrade trigger levels, though competition remains fierce from rival broadband providers such as NTL, Freeserve and AOL.

On a sour note, the telecoms heavyweight said it expected to show a pension deficit of up to 1.5bn for the end of 2002. Although the pension funding valuation had not yet been completed, BT said the companys actuary believed the deficit would be in a range of 1bn to 1.5bn, as falling stock markets erode the value of invested pension money.

Concerns about BTs large pension fund have weighed on its share price in recent weeks. The stock has outperformed the FTSE 100 by just two per cent since the start of the new year, despite the fact that the UK telecoms sector has outperformed the same London benchmark index by nine per cent in that period.

BT said net debt fell 195m in the quarter to 12.9bn, and added it would fall even further in the fourth quarter when it banks the 2.6bn it received from Vivendi for its stake in Frances Cegetel.

Ian Livingston, group finance director, said: "BTs financial position continues to strengthen. Underlying operating performance is strong, with earnings per share increasing by 71 per cent over last year and 66 per cent in the nine months."

BT said business call volumes have dropped off, driven by a combination of customers switching out of traditional telephony and pressure from the implementation of carrier pre-selection.

Last month, the company launched a new call package aimed at corporate users, which places a ceiling of 10p on national and local business calls and provides a single BT customer contact.

HA HA, I fanyone was even remotely interested in your thread Ains, I'd tell them to short BT.A, BAY.L and OOM. only you and the C+P's here though! see you soon.

Interesting article on sharing a bb connection - in aprils PC pro ..... covers Home and small business use

ains



LONDON (AFX) - BT Group PLC, the UK's dominant telecom company, has sought to allay investor fears about its widening pension deficit.
But many brokers said BT will need to pay more than its current 200 mln stg a year as a pension top-up to cover the shortfall.

And they also highlighted a weaker-than-expected 1 pct rise in third-quarter revenue.

BT's shares traded 7.25 pence or 3.96 pct lower at 175.25 at 1.00 pm.

The company also reported a 37 pct rise in third-quarter underlying profits to 521 mln stg, above stock market forecasts centred on 500 mln.

BT revealed its pension funds face a potential deficit of more than 1.5 bln stg -- nearly 10 times the shortfall it had just three years ago.

The company has been hit by a combination of a huge slump in equity prices and new accounting rules.

At the end of March last year BT had 71 pct of its pension fund assets in equities, then worth 19.2 bln stg.

Analysts estimate their value could have fallen by up to 5 bln stg by the year-end.

But finance director Ian Livingston said he sees no need to increase the current 200 mln stg annual top-up it is paying into the scheme.

"We have said previously we did not expect the 200 mln a year to change significantly and on the basis of the work the actuary has done to date we have got no reason to change that position," said Livingston.

But many analysts think 200 mln stg will not be enough.

Broker Merrill Lynch, in a research note, raised its EPS and dividend forecasts but still felt it necessary to increase its projected pension top-up payments needed by the company by 50 mln stg a year to 350 mln.

Merrill said BT's results "tell a familiar tale", with revenues weaker than it had anticipated, but EPS better.

BT reported profit before taxation, goodwill amortisation and exceptional items of 521 mln stg for the three months to Dec 31 2002, up 37 pct on the same three months a year earlier.

Group turnover of 4.701 bln stg was up just 1 pct over the same period.

According to an AFX News poll of eight brokers' forecasts, an underlying pretax profit of 460-530 was expected, giving a consensus of 500 mln. That compares with a 381 mln stg profit last time.

Revenues of 4.7-4.83 bln stg were expected, up some 2.2 pct on the same quarter a year ago.

The group said net debt was reduced by 195 mln stg to 12.9 bln stg at Dec 31 2002, but it received 2.6 bln stg from the sale of its stake in Cegetel to Vivendi in January.

The company aims to get its net debt below 10 bln stg.

BT also revealed record broadband sales in January, in excess of 25,000 per week, giving it a total customer base of over 650,000 as of Feb 7.

Chief executive Ben Verwaayen said the group is on track to hit its 6 mln DSL subscribers target by mid-2006.

But some analysts view the target as challenging due to fierce competition from cable operators.

tim.farrand@afxnews.com

172 now...1% revenue growth,badly recieved my market.

real chance this will retest its lows in the 150's now.i'd imagine there will be broker downgrades tomorrow morning.

I think you will find the brokers have already made their comments ....

ainsoph

169 now...their comments musn't be much good.You have been tipping this from 9.Why ?

I never tip any share and we started the thread @ 176p

did you read this dreamer - 'I hold and swing trade a few and not adverse to intraday trading them'

How many alises do you have now?



ains




BT seeks to calm fears on pension deficit, reports Q3 profit up 37 pct
LONDON (AFX) - BT Group Plc, the UK's dominant telecom company, sought to allay investor fears about its widening pension deficit.

But many brokers argued BT will need to pay more than its current 200 mln stg a year as a pension top-up to cover the shortfall.

And they also highlighted a weaker than expected 1 pct rise in third quarter revenue.

The company also reported a 37 pct rise in third quarter underlying profits to 521 mln stg, above stock market forecasts centred on 500 mln.

BT revealed its pension funds face a potential deficit of more than 1.5 bln stg - nearly 10 times the shortfall it had just three years ago.

The company has been hit by a combination of a huge slump in equity prices and new accounting rules.

At the end of March last year BT had 71 pct of its pension fund assets in equities, then worth 19.2 bln stg.

Analysts estimate their value could have fallen by up to 5 bln stg by the year-end.

But finance director Ian Livingston said he saw no need to increase the current 200 mln stg annual top-up it is paying into the scheme.

"We have said previously we did not expect the 200 mln a year to change significantly and on the basis of the work the actuary has done to date we have got no reason to change that position," said Livingston.

But many analysts think 200 mln stg will not be enough.

Broker Merrill Lynch, in a research note, raised its EPS and dividend forecasts but still felt it necessary to increase its projected pension top-up payments needed by the company by 50 mln stg a year to 350 mln.

Merrill said BT's results "tell a familiar tale", with revenues weaker than it had anticipated, but EPS better.

BT reported profit before taxation, goodwill amortisation and exceptional items of 521 mln stg for the three months to Dec 31 2002, up 37 pct on the same three months a year earlier.

Group turnover of 4.701 bln stg was up just 1 pct over the same period.

According to an AFX poll of 8 brokers' forecasts, an underlying pretax profit of 460-530 was expected, giving a consensus of 500 mln. That compares with a 381 mln stg profit last time.

Revenues of 4.7 bln to 4.83 bln stg were expected, up some 2.2 pct on the same quarter a year ago.

The group said net debt was reduced by 195 mln stg to 12.9 bln stg at Dec 31 2002, but it received 2.6 bln stg from the sale of its stake in Cegetel to Vivendi in January.

The company aims to get its net debt below 10 bln stg.

BT also revealed record broadband sales in January, in excess of 25,000 per week, giving it a total customer base of over 650,000 as of Feb 7 2003.

Chief executive Ben Verwaayen said the group was on track to hit its 6 mln DSL subscribers target by mid-2006.

But some analysts view the target as challenging due to fierce competition from cable operators. tim.farrand@afxnews.com

i would say your intraday trading would be good !

Stars back BT as it dismisses pensions threat
Published: 16:24 Thr 13 Feb 2003
By Gavin Lumsden, Editor in Chief


(Update) There are no less than eight of our favourite fund managers backing BT right now despite today's fears of its ballooning pension fund deficit - read on to find out who they are.


BT today shrugged off worries about its ballooning pension fund deficit and insisted it was growing in all the right areas.

Ben Verwaayen, BT's chief executive who has been in the hot seat for a year now, said today that in spite of having to re-think his ambitious targets for 6-8% revenue growth in his first three years of office, he was if anything more optimistic than ever about BT's prospects.

'If anything I have to scale up not down expectations,' said Verwaayen, having found a responsive, innovative company that is working smarter and has lots of opportunities in Europe, he said. 'I am very optimistic,' he added.

Trading aside, one major concern for investors has been the company's pension fund deficit. BT (BT.A) is not alone in having a hefty deficit, as GlaxoSmithKline proved yesterday with a 1.3 billion funding gap and Barclays' admission today that its scheme would show up 1.3 billion short on incoming FRS17 accounting standard.

BT's actuary is in the process of carrying out the triennial valuation of the pension scheme, and on a preliminary view based on the current SSAP 24 basis, the deficit looks like being between 1 billion and 1.5 billion, compared to 0.2 billion in March 2000.

The news knocked the shares down nearly 12p, or 6.5%, at 171.25p.

Since 2000, BT has been paying in 200 million a year to the fund, and industry watchers have been expecting this sum to rise to at least 300 million. However group finance director Ian Livingston said he did not expect any 'substantial change' from the current 200 million level, and reminded investors that the 200 million was tax deductible so would cost BT only 70% of the cash paid in.

BT reported revenues for the third quarter to December up just 1% to 4.7 billion, although pre-tax profits were up 37% at 521 million and earnings per share were up 71% at 4.1p. Net debt, which hit a critical 20 billion a couple of years ago, was down a further 195 million to 12.9 billion at December, and decreased further in January with the receipt of the 2.6 billion proceeds from the sale of BT's holding in French operator Cegetel. This was the 26% holding that Vodafone had hoped to pick up, but which was pre-empted by Vivendi.

Verwaayen said today's figures were 'really excellent results,' especially when you look underneath the 1% overall growth to figures such as consumer revenues which are growing for 'the first time in many, many years,' strong corporate business growth and broadband orders hitting some 25,000 a week last month.

The main factors behind the flat revenues were the decline in global carrier turnover due to lost business from AT&T and WorldCom following the winding up of BT's Concert joint venture with the two US giants.

Verwaayen stressed the importance of growing 'profitable revenues', rather than revenue for revenue's sake, and said 'where it is important revenue, we are growing.'

Capital expenditure is expected to be some 2.6 billion for this year, and will be between that figure and 3 billion going forward.

Verwaayen said it was important to invest to deliver future growth. The company has also seen cost cutting slightly ahead of plan, and Verwaayen said it has been improving processes. 'Cost cutting means doing the same for less money,' said Verwaayen, and he said BT was working smarter and improving operations.

He is particularly pleased with the progress of broadband, where the numbers are 'fantastic,' some 650,000 users by last week, and highlighted also large corporate sales, and successes in BT Ignite.

He acknowledged that in the small business and residential markets, BT has faced tough competition from virtual operators and carrier pre-select, which had a 'major impact' on business revenues. However he said BT's response in the business market is BT Business Plan, launched last month, which guarantees a ceiling of 10p on national and local business calls and rewards loyalty.

He also maintains that when competitors quote better prices than BT in the retail market, they are quoting BT's standard charges, where some 10 million BT customers now take packages such as BT Together, which offer 'absolutely competitive' prices.

As to the outlook for the next year or so, Verwaayen said that in such an uncertain market, everyone is looking for certainties. 'We have the capability to keep growing where it matters,' he said.

Livingstone also said the company would maintain its 'progressive dividend policy, while continuing to generate cash and reduce debt. 'We can now do all three,' he said.

Citywire Verdict:

There are many good jokes about actuaries but here is one that investors in big companies like BT might like to consider as the issue of pension scheme funding comes to the fore.

An actuary is someone who'd rather be completely wrong than approximately right.

On the face of it BT's actuarial advice seems reassuring but that does not mean the problem of pension deficit will not return to haunt the company and its shareholders.

Nevertheless, on balance, we are inclined to give BT the benefit of the doubt. In this market there is no share that does not have issues and risks.

With the dividend set to get interesting again and its recovery well in place BT looks highly attractive. It is also encouraging to see that the stock is held by no less than eight star fund managers, all rated a top AAA by Citywire for their excellent risk-adjusted returns over three years. Andrew Green of GAM UK Diversified, Colin Morton of BWD UK Equity Income, Chris Littlejohns' Merrill Lynch UK Income, Edward Bonham Carter in Jupiter Undervalued Assets, Hak Salih of M&G Capital, Stephen Whittaker of New Star UK Growth, Nicholas Purves of St James Equity Income and Neil Woodford in his Invesco Perpetual High Income fund all hold BT as a top 10 holding.

If you need any more incentive Merrill Lynch today said buy with a price target of 230p.

As my colleague Richard Lander - who has tipped in and out of BT successfully recently - said recently there is no such thing a sure bet at the moment. But if you're looking for a longer term investment, BT is a great place to start.

2003 Citywire

"I never tip any share and we started the thread @ 176p
- ainsoph

ha, ha ,ha, ho, ho ,ho, eu huh har har ooooohh, what a wheeze

note: ADVFN threads created by ainsoph

BT will soon be back to 6 11 Aug 01
BT ... down but not out (27 Sep'01)


God, what a loser.

Telegraph gives them as a buy this morning ..... BT that is not the y peeps :-))



worries about a widening pension deficit outweighed broadly better-than-forecast third quarter figures. According to an AFX poll of 8 brokers' forecasts, an underlying pretax profit of 460-530 was expected for the three months ending Dec 31 2002, giving a consensus of 500m. The actual figure came in 37% higher at 521m. Revenue of 4.7 bln to 4.83 bln stg was forecast, up some 2.2% on the same quarter a year ago. But, in fact, revenues rose a slim 0.9%.

Broker Merrill Lynch, in a research note, raised its EPS and dividend forecasts but still felt it necessary to increase its projected pension top-up payments needed by the company by 50m per annum to 350m. Merrill said BT's results "tell a familiar tale", with revenues weaker than it had anticipated, but EPS better. The US broker had expected group revenue growth of 2.2% against BT's reported 0.9%. However, it noted the primary weakness was in Ignite, BT's business services unit, and was encouraged that the core voice business remained encouragingly robust. BT's EBITDA was 2.5% ahead of Merrill's forecast, thanks to quicker than expected cost-cutting, leading to the group's underlying EPS of 4.1 pence some 4.9% ahead consensus. This led Merrill to raise its 2003 EPS estimate by 4.1 pct, with its 2004 expectation upped by 3.5%. The broker also upped its dividend expectation for 2003 to 6.1 pence from 5.9. Merrill said its expectation of an increased pension top up payment was more than offset by lower levels of forecast capital expenditure, leading Merrill to increase its free-cashflow forecasts by 21% in 2003, 16% in 2004 and 7% in 2005. "In the near term we continue to believe that the potential for further cost and capex reductions outweighs the longer-term risks inherent in BT's business model," Merrill said in a morning note to clients. It repeated a target price of 230 pence per BT share.

Broker Cheuvreux said it expects further funding contributions of 1.6 bln stg spread over the next 10 years to cover the pension shortfall. "This won't remove pension concerns, but we believe the share price is discounting 3-4 bln stg additional funding, in other words is at the conservative end of expectations," said the broker in a research note. Cheuvreux described BT's results as mediocre. "More reassuringly Ignite was the weak division rather than the traditional businesses," said the broker in a research note.

...for a business with BT's utility profile, the dividend is miserly. Its prospective dividend yield of about 3.4 per cent is below the UK market average. It should rise as BT's payout rate shifts from around 43 per cent to 50 per cent, and earnings rise. But for now - with BT facing the prospect of slow long-term growth and ongoing fears over the pension fund deficit - it should not be enough to tempt investors.