Wednesday, April 4, 2012

Fibre - Infinity driving BT revenues with £70 cash flow from each new subscriber

Proactive investors reports Morgan Stanley's view of BT is "overweight" as a result of settling its pension fund problems and in rolling out BT Infinity.
The US broker said the removal of the pension uncertainty adds 10p to its price target, which is now 280p, but it is Infinity, the company’s high-speed fibre broadband service, that is driving BT’s cash flow.

Every one million new Infinity subscribers generates around £70 million of incremental cash flow for BT, which could rise to £100 million if the group increaes market share as well, said Morgan Stanley.
Morgan Stanley forecast rising dividends.

BT Infinity offers speeds of up to 38 Mbps.

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