Friday, May 11, 2018

BT Group Results

The Financial Times Opinion on BT's results talks about the strategy risking a Kodak moment, in doing so they fail to address the Elephant in the Room. This must be music to the ears of  CEO Gavin Patterson.

If the Company is to be turned around, then the job cuts need to be about the closing of businesses that have no future and the loss of 13,000 members of staff is not enough.  Global Services is not a business that works and looks more like Carillion than a magic money tree. The idea that BT Vision can get customers to pay more for services that are not core  has been proven wrong and thus is now the time to close the business?

Yet these plans were not addressed in the presentation rather short terms issues of investment in Next Generation Investment and statutory requirements for funding Pension requirements where the focus. 

If BT Group is to be turned around I do not think that Gavin Patterson is capable of leading the job, and that they need to find talent from outside the company capable of leading the restructure as well as changing the relationship with regulators if the business is to have a future. 

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