The telecoms giant is poised to announce a £500m rise to a previous aim alongside its half-year results as it fights surging energy prices.
As a countermeasure to the inflationary pressures buffeting the UK economy, BT Group is anticipated to increase its multibillion-pound cost-savings goal on Thursday.
Philip Jansen, the chief executive officer of BT, is expected to unveil intentions to find an additional £500 million in savings by the end of 2025 in the company’s half-year results.
The previously declared £2.5bn goal for BT was part of Mr. Jansen’s 2019 attempts to improve the efficiency of the erstwhile state monopoly.
Analysts expect Mr. Jansen to disclose a considerable rise in the company’s capital expenditure plans in addition to the higher £3 billion number, which a major BT shareholder described as “very probable” on Wednesday evening.
According to another leading investor, he could potentially propose a drastically enhanced figure for the number of houses signed up for full-fiber broadband connections.
Insiders attempted to downplay the likelihood that the revised cost-cutting objective would have a significant short-term impact on BT’s 100,000-person staff.
Instead, they stated that the majority of the savings will come from supply chain efficiencies and product enhancements.
In the past year, BT has been affected by growing energy bills, much like the rest of the British business community.
Analysts at Redburn reported last week that the group’s energy bill increased by £200 million during the time, highlighting the need to identify additional cost-cutting opportunities.
BT has previously projected a pre-interest, tax, depreciation, and amortization profit of £7.9 billion for the current fiscal year.
In recent months, BT has been struck by a wave of frontline staff strikes, one of several corporations suffering staff unrest over below-inflation pay offers.
Wednesday evening, BT declined to comment.
