Dan Coatsworth, head of markets at AJ Bell, said: “Telecoms titan BT may have raised its annual dividend and lifted the medium-term outlook for the payout, but there was still a sense the market was underwhelmed by its full-year results.
“BT’s recovery is built on moving past the peak period of capital expenditure on infrastructure which should then allow free cash flow generation to advance substantially.
“It has made progress on reducing costs in the past financial year and is intent on rewarding shareholders for their patience while the turnaround plan plays out. However, the company is finding it difficult to dial up revenue growth. Revenues fell modestly in the year to 31 March and are expected to decline in the current financial year too.
“Broadband customers are still being lost in its Openreach business and while its consumer retail division returned to growth, average revenue per user remained under some pressure thanks to strong competition in this market.”
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