BT pulls dividend until 2021/22 due to coronavirus

Britain's biggest telecoms group BT has suspended its dividend until 2021/22 and pulled its financial outlook in response to the COVID-19 pandemic.

On the same day that rivals Telefonica and Liberty Global announced the merger of their British units to build a stronger challenger, BT also set out plans for a new 5-year program to modernize the business. The new program will cost 1.3 billion pounds to achieve and will deliver annualized gross benefits of 2 billion pounds by March 2025 as it switches off many legacy programs and uses new technologies to move faster.

"Of course, Covid-19 is affecting our business, but the full impact will only become clearer as the economic consequences unfold over the next 12 months," Chief Executive Philip Jansen said. "Due to Covid-19, BT is not providing guidance for 2020/21, at this time."