Shareholders urged to sell BT as annual losses balloon

BT's share price slumped 4 per cent in early morning trading after the telecoms giant announced a full-year loss of £134m and slashed its yearly dividend to 6.5 pence. Retail stockbroker, The Share Centre advises BT shareholders to sell citing better long-term opportunities within the telecoms sector for investors.

Commenting on BT's results, Nick Raynor, investment adviser at The Share Centre, said: "Today's announcement offers nothing but doom and gloom for shareholders after BT announced plans to axe 15,000 jobs and a severe cut to its yearly dividend following a significant annual loss.

"With a dismal dividend on offer and difficult trading conditions set to continue, we are advising BT shareholders to sell at present. Although BT's efforts to streamline the business may later help it turn the corner, it is too early to say when and if these measures will work.

"We feel investors looking for income and growth in the telecoms sector could do better with Vodafone. The Group's revenue increased by over 14 per cent in the third quarter and projected profit and revenue figures were increased. Vodafone continues to satisfy both customers and income seekers by continuing to cut the price of calling abroad from the UK, and offering a stable dividend of over 5%."