Quick View: Openreach Stake Sale To Improve BT's Finances, UK Broadband Outlook

摘要

The Latest: BT is reportedly looking to sell a stake in Openreach, the its networks division. Potential buyers could includeAustralian investment bank Macquarie and a sovereign wealth fund.Implications: Selling a minority stake in Openreach would considerably benefit BT’s financial position. The company has beenunder significant financial pressure over the past few years which has led to several cost-cutting efforts, such as reorganisationalmeasures and exiting several international markets. Despite these measures, during the 2019/2020 fiscal year (ending in March2020) the company’s performance remained broadly poor, with adjusted revenues and EBITDA both decreasing 3% y-o-y whilecapex and net debt both growing by 5% on a yearly basis.