BT Group (LSE:BT.A) Gross Margin % : 73.30% (As of Sep. 2023)

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What is BT Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. BT Group's Gross Profit for the six months ended in Sep. 2023 was £7,628 Mil. BT Group's Revenue for the six months ended in Sep. 2023 was £10,407 Mil. Therefore, BT Group's Gross Margin % for the quarter that ended in Sep. 2023 was 73.30%.

The historical rank and industry rank for BT Group's Gross Margin % or its related term are showing as below:

LSE:BT.A' s Gross Margin % Range Over the Past 10 Years
Min: 64.2 Med: 71.12 Max: 83.53
Current: 72.45

During the past 13 years, the highest Gross Margin % of BT Group was 83.53%. The lowest was 64.20%. And the median was 71.12%.

LSE:BT.A's Gross Margin % is ranked better than
84.66% of 352 companies
in the Telecommunication Services industry
Industry Median: 49.06 vs LSE:BT.A: 72.45

BT Group had a gross margin of 73.30% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for BT Group was 2.70% per year.

BT Group Gross Margin % Historical Data

The historical data trend for BT Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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BT Group Gross Margin % Chart

BT Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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65.68

68.62

68.90

74.39

73.34

BT Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															73.79	74.98	75.07	71.60	73.30

Competitive Comparison of BT Group's Gross Margin %

For the Telecom Services subindustry, BT Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

BT Group's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, BT Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where BT Group's Gross Margin % falls into.

BT Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

BT Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	15168	/	20681
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20681 - 5513)	/	20681
	=	73.34 %

BT Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	7628	/	10407
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10407 - 2779)	/	10407
	=	73.30 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

BT Group (LSE:BT.A) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

BT Group had a gross margin of 73.30% for the quarter that ended in Sep. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

BT Group Gross Margin % Related Terms

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BT Group (LSE:BT.A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » BT Group PLC (LSE:BT.A) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

BTGOF:USA BTl:UK BTQ:Germany

Address

1 Braham Street, London, GBR, E1 8EE

Website

https://www.bt.com

BT Group is the incumbent telecommunications operator in the U.K. It is the owner of Openreach, the largest fixed-line network in the U.K. Openreach operates as a separate entity due to regulatory requirements but is still 100% owned by BT. Since 2020, Openreach has accelerated its fiber investments and expects to have 90% of the U.K. covered with FTTH by 2026. In the consumer division, BT has approximately 30% market share in broadband and mobile services. The enterprise segment serves large corporations while the global services division provides communications consultancy services.

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