BT Group share price rose by over 3% on Thursday after the company published its financial results. It rose to 210p, its highest level since September last year, and ~180% above its lowest level during the pandemic.
BT Group’s earnings download
The main catalyst for the ongoing BT Group share price is that its business continued to make some modest improvements. Its FTTP premises jumped to over 21.4 million, with the management hoping that the number will jump to 25 million by the end of the year.
Openreach business continued growing, with the connected premises jumping to 8.2 million. At the same time, its Openreach broadband lines lost 210k during the quarter, with the full year losses rising to 850k, better than the previous guidance.
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The company continued to control its costs well, by reducing its energy consumption. It also reduced the number of workers by 7% to 108k. At the same time, Openreach’s repair volumes dropped by 18%%.
The results showed that its adjusted revenue dropped by 4% in the third quarter to £4.9 billion. This retreat was because of it asset disposals and lower equipment sales. Its adjusted EBITDA fell by 1% to £2.1 billion. Allison Kirby, the CEO, said:
“BT continues to deliver on its strategy – building and connecting the UK to the best next-generation networks at record pace, while accelerating our transformation. Our network leadership strengthened further in the quarter, with full fibre broadband now reaching more than 21 million homes.”
BT Group’s business division continued its weakness, with its adjusted revenue falling by 6% to £1.29 billion. Its international revenue slumped by 14% to £522 million as the company continued selling its businesses in a bid to focus on the local market.
BT Group share price technical analysis
The weekly timeframe chart show that the BT Group stock price has rebounded after bottoming at 70p during the pandemic. It peaked at 216p last year, its highest level since March 2017.
The stock then pulled back to the dynamic support of the 50-week Exponential Moving Average (EMA). It has now rebounded and is attempting to cross the key resistance level at 216p.
Moving above that resistance level is important as it will invalidate the forming double-top pattern whose neckline is at 172p. The stock has also moved above the 50% Fibonacci Retracement level at 194p and flipped the Supertrend indicator red.
At the same time, the Relative Strength Index (RSI) and the MACD indicators have continued rising this year. Therefore, more gains will only be confirmed if it moves above the double-top level at 216p, a move that will invalidate the double-top level.
A move above that level will point to more gains, potentially to the 23.6% Fibonacci Retracement level at 257p. This target price is about 23% above the current level.
Flipping that resistance level into a support will point to more gains to 313p, its highest level in 2015. On the other hand, a drop below the key support level at 179p will invalidate the bullish outlook.
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