BT Group cancels dividend for two years
The company launched a simplification programme to make £2bn of savings over the coming five years
Stocks impacted: BT Group PLC (BT.A)
BT Group decided to suspend the payout until 2022, when it will be reduced 50% to 7.7 pence per share. In 2018/19 it paid a full-year dividend of 15.4 pence. Britain’s biggest telecoms group has also pulled its financial outlook in response to the coronavirus pandemic and set out plans for a new 5-year programme to modernize the business. Earnings for the past financial year would barely have covered the 15.4 pence dividend that was paid last year, having fallen 20% to 17.5 pence per share. Net debt has swelled to £18bn from £11bn a year ago. BT Group stocks fell over 9% after markets opened and trimmed losses to 7.5% afterward.
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