Three things you need to know as the UK financial markets open, from Tony Cross.
#1. BT struggling to dial into growth
BT Group LON:BT.A published interim results today, confirming EBITDA, capex and cashflow guidance for the full year but lowering revenue forecasts by 1-2% reflecting weaker non-UK trading. However the metrics for the first half may well give investors cause for concern with notable points here including pre-tax profits down 10%, a reduction in residential broadband subscribers and business revenues slipping, too. A dividend of 2.4p per share has been declared and revenue growth is forecast to improve from FY26.
#2. Market share gains at Sainsbury
Retailer J Sainsbury LON:SBRY has its half year update out today, too, noting sales up 4.6%, although the growth here is very much driven by food, with contraction noted in general merchandise and via the Argos channel. Food margins are also improving and the total underlying profit before tax was up 4.7% at £356m. Market share gains are notes as being the best in the industry, full year retail underlying profits are expected to come in just over the £1bn mark and an interim dividend of 3.9p has been called.
#3. Trainline remains on track with underlying growth delivering outsized returns
Rail ticket reseller Trainline LON:TRN also has numbers for the six months to 31st August out today, with net ticket sales up 14% and revenues 17% higher, which have contributed to a more than doubling of operating profits. EPS for the first half has been higher than the total level recorded in FY24, the company continues to enjoy strong growth in some European markets and adds that it is now the UK’s most popular travel app. The improved guidance has also been reiterated.
