BT Group retains full-year 2018/19 outlook after change to IFRS 15

BT Group reiterated its view on the impact that its changeover to the so-called IFRS 15 accounting principle for revenue and cost recognition would have on its results beginning with the 2018/19 fiscal year and is outlook for the coming year.

Under IFRS 15, its full-year revenues would take a hit in the high millions of pounds with operating profits at the EBITDA level expected to be lower by an amount in the low tens of millions, the company said in a statement.

However, there would be no impact on its cash flow.

The telecommunications carrier also reiterated its expectation for a cumulative increase in retained earnings before tax as of 1 April of between £1.1-£1.5bn, resulting in an additional one-off cash tax payment that was to be split equally between 2018/19 and 2019/20.

However, estimates of the impact of adopting the IFRS 15 standard were still being finalised, including those for the final transition adjustment to retained earnings.

Instead of restating prior years' financials, BT chose to reflect the impact of the change from IAS 18 to IFRS 15 in one go in its 1 April 2018 opening reserves.

"BT's outlook for 2018/19 including the impact of IFRS 15 remains unchanged," the company added.

Also on Monday, BT Group published refreshed financial and operational key performance indicators for the previous two fiscal years, in order to improve the visibility on the drivers behind its performance.

Starting from 27 July, BT would also begin publishing quarterly financials.

As of 1604 BST, shares of BT Group were 0.71% weaker at 217.20p.