BT boss Philip Jansen urges investors to stick to his plan to “build like anger” when the results for the full year emerge
BT will announce its full year results on Thursday as CEO Philip Jansen tries to resolve a number of sensitive issues.
The 54-year-old is in the middle of an expensive expansion of the telecommunications company’s broadband network and is putting pressure on his finances.
It has forced him to temporarily cancel the dividend, cut costs and sell “non-core” parts of the business. The company effectively put BT Sport on sale last week, with ITV, Amazon and Disney among the potential buyers for a partial stake.
At the same time, BT was caught in the turmoil in the meeting room after reported differences between Jansen and chairman Jan du Plessis led him to announce his departure. And the company is expected to report its pension system deficit – estimated to be up to £ 9 billion.
Jansen urges investors to stick with his plan “like building anger”, arguing that an improved fiber optic broadband network will bring the company great returns in the future.
It was recently backed by a new deal with regulator Ofcom, which has agreed not to cap prices on top-end Internet services.
In another attempt to raise more money for investments, Jansen will probably also try to sell a stake in Network Arm Openreach.
In the past year, the shareholders seem to have adjusted to Jansen’s strategy. The shares gained 60 percent. However, they remain at all-time lows. The stock closed at 169.6 pence yesterday, well below its 2015 high of 502.6 pence. BT is projected to have annual sales of £ 23.4 billion, up from £ 22.9 billion in the previous year, but earnings drop from £ 3 billion to £ 2.1 billion.