Although BT Group PLC's (BT) revenues were broadly in line with our estimate, adjusted operating margin was below our estimate, primarily due to higher-than-expected depreciation expenses, as a percentage of revenues. However, adjusted net margin was significantly higher than our estimate, primarily due to a tax rebate reported by the company compared to our estimate of tax expenses in 4Q 09. In light of mixed 4Q 09 results and considering current price levels…

Although the company has maintained moderate revenue growth, margins have declined considerably over the last couple of quarters, primarily attributable to a delay in realization of cost savings and oneoff charges in the Global Services division. Moreover, the company expects another one-off charge and higher costs to continue for the Global Services division in 4Q 09. While BT’s Management are quite optimistic…

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Today BT Group Plc (BT) announced that its Global Services segment’s EBITDA is expected to be approximately GBP17 mn, while the rest of the group’s EBITDA is expected to increase by 5% y-o-y in 3Q 09. However, the company expects to incur more than GBP340 mn as a one time charge in 3Q 09 due to ongoing financial and contract reviews in the Global services segment. On account of this the BT common stock…