Time to buy BT shares?

BT is one of the UK’s most widely held shares with over 700,000 investors still holding from privatisation in 1984.

They were dealt a heavy blow 24th January when BT unveiled an accounting scandal which sent shares lower by over 20%, one of BT’s worst days in history.

The scandal was limited to a small Italian unit which accounted for only around 1% of earning before interest, tax, depreciation and amortisation (EBITDA) so the material impact wasn’t huge but the damage was done to investors’ sentiment who regarded BT as a ‘safe’ share.

The board was quick to announce they had sought out and removed those responsible to reassure investors that the problem wasn’t rife throughout BT.

CEO Gavin Patterson said of the scandal:

“We are deeply disappointed with the improper practices which we have found in our Italian business…we have undertaken extensive investigations into that business and are committed to ensuring the highest standards across the whole of BT for the benefit of our customers, shareholders, employees and all other stakeholders.”

BT reported earnings later in the week and released key metrics of how their core broadband, TV and telecoms were performing.

Shares have since stabilised and reside only a couple percentage away from intra-day lows set in January and the cheapest level since 2013.

BT PLC Special Report Topics:

  • Should you buy after the recent drop?

  • The impact of the Italian scandal on the wider business

  • Technical levels of key share price support

  • Is the acquisition of EE start bearing fruit?

  •  Key drivers of earnings in 2017/2018

Download your free BT PLC special report now for the latest research from leading City Analysts.

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