BT has suggested reducing the dividend distributed to shareholders to invest in a fiber optic infrastructure to the subscriber (FTTP). Speculation has mounted that BT is preparing to cut its dividend for the first time since 2009, with some anticipating an announcement in the company's latest financial results. However, this approach has not materialized, with General Manager Philip Jansen doubling down on his promise to shift the pay to the end of the current fiscal year.
Dividend BT
It is believed that some investors would be willing to accept a discount if BT could demonstrate the potential for long-term earnings. Others believe that investments in "full fiber" infrastructure are critical given recent deployments by competitors like Virgin Media and the rise of "altnet" providers like CityFibre. BT has increased its target of deploying fiber optics on site (FTTP) to four million by 2021 and to 15 million by the mid-2020s, provided the investment and regulatory climate is right. National coverage could be achieved by 2023. At the company's annual general meeting in London, chairman Jan du Plessis said BT would consider cutting the dividend, as well as other cost savings and borrowing, to fund this expansion. This could happen in the next two years. Jansen is overseeing the implementation of a restructuring plan put in place by former CEO Gavin Patterson, which will create 13,000 jobs, but whose activities will be decentralized to 30 sites across the UK. As part of the restructuring, BT will leave its headquarters in London St. Paul. The changes are expected to save €1.3 billion, allow the stripped down company to react more quickly to market trends and be closer to customers. To increase employee engagement and boost morale, BT must allocate €50 million worth of shares each year. Through time