Stock Market Update – BT Group Stock Price Prediction 2025

BT Group Stock Price Prediction 2025:- ​BT Group is one of the UK’s biggest telecom companies, offering broadband, mobile, TV, and IT services to millions of customers. With a strong network infrastructure and presence across the UK, BT plays a key role in connecting homes and businesses. The company is working on modernising its services, including rolling out faster fibre broadband and 5G. BT Group Stock Price on LON as of 24 April 2025 is 167.00 GBX.

BT Group: Current Market Overview

• Open: 167.45
• High: 169.05
• Low: 165.75
• Mkt cap: 1.66KCr
• P/E ratio: 21.65
• Div yield: 4.84%
• 52-wk high: 174.40
• 52-wk low: 102.50

BT Group Stock Price Chart

BT Group Stock Price Prediction 2025 (Prediction)

Key Factors Affecting BT Group Stock Price Growth

​Here are five key factors that could influence BT Group’s stock price growth by 2025:​

1. Expansion of Full-Fibre and 5G Networks: BT is aggressively investing in its infrastructure, aiming to extend full-fibre broadband to 25 million premises by December 2026 and achieve 5G coverage for over 90% of the UK population by 2028. As of early 2025, the company has already reached 17 million premises with full-fibre and connected 6 million customers, indicating strong progress toward these goals.

2. Cost-Cutting and Operational Efficiency: Under CEO Allison Kirkby’s leadership, BT has implemented significant cost-saving measures, including a partnership with Tata Consultancy Services to decommission legacy technology, aiming for annual savings of £65 million by the end of FY25. Overall, the company targets £3 billion in gross annualized savings by 2025, which is expected to enhance profitability and free cash flow.

3. Focus on UK Market and Divestment of Global Operations: BT is sharpening its focus on the UK market, considering the disposal of its global business segments. This strategic shift allows the company to concentrate resources on domestic infrastructure and services, potentially leading to improved operational performance and shareholder value.

4. Strategic Partnerships and Technological Innovation: BT’s collaborations with major technology firms, such as its partnership with Google Cloud to leverage AI and machine learning, are aimed at enhancing customer service and operational efficiency. These initiatives position BT to capitalize on emerging technologies and digital transformation trends.

5. Improved Financial Performance and Dividend Growth: BT has reported a 1% rise in full-year revenue to £20.8 billion and a 2% increase in adjusted core earnings to £8.1 billion. The company has also resumed dividend payments, declaring a final payout of 5.39p per share, with a commitment to a progressive dividend policy. These financial indicators reflect BT’s ongoing recovery and potential for stock price appreciation.

Risks and Challenges for BT Group Stock Price

​Here are five key risks and challenges that could impact BT Group’s stock price by 2025:​

1. Underperformance in Business Services: BT’s business unit, serving corporate and public sector clients, has been a consistent underperformer. In November 2024, the company reduced its revenue forecast for the fiscal year ending March 2025 by 1–2%, citing decreased sales of low-margin goods abroad and a weaker outlook in the corporate and public sector. This segment’s struggles continue to pose challenges for BT’s overall financial performance.

2. Rising Operational Costs: The UK government’s budget changes have increased BT’s costs by £100 million due to higher employer National Insurance contributions and a raised minimum wage. These additional expenses add pressure on BT’s profitability and may necessitate further cost-cutting measures or price adjustments.

3. Intense Market Competition: BT faces stiff competition from alternative network providers (altnets) like CityFibre, which have partnered with major players such as Sky. While BT’s extensive infrastructure offers some protection, the competitive landscape could lead to market share erosion and pricing pressures.

4. High Debt and Pension Liabilities: BT’s financial health is burdened by substantial pension obligations and a significant debt load. These liabilities can limit the company’s financial flexibility and may impact investor confidence, especially if earnings do not improve to support these commitments. ​

5. Dividend Sustainability Concerns: Despite offering an attractive dividend yield of 5.03%, BT’s payout ratio stands at 101.27%, indicating that it is distributing more in dividends than it earns in net income. This raises concerns about the sustainability of its dividend policy unless there is a significant improvement in earnings.

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