AUS
NZ
UK
CA
USA
IND
Highlights:
- Rapid Full-Fibre Expansion: Openreach's full-fibre network now spans 16 million homes, covering half of the UK.
- Customer Take-Up Grows: With record customer additions, Openreach’s uptake rate stands at 35%.
- Revenue Dips, Dividend Rises: Despite a slight revenue decline, BT increased its interim dividend to 2.4p.
BT Group PLC (LSE:BT) has announced substantial progress in its full-fibre broadband rollout, achieving coverage across 16 million UK homes—equivalent to approximately 50% of the population. This expansion comes as BT targets 25 million homes under its Openreach division, a milestone the company appears well on track to reach, especially as this year’s rollout target is now raised to 4.2 million homes.
The accelerated network deployment is reflected in Openreach’s impressive customer uptake rate, which has climbed to approximately 35% after a record number of new customer connections in the first half of the financial year. This robust demand aligns with BT’s overarching aim to modernize the UK's broadband infrastructure, providing faster and more reliable internet access to millions of homes.
Despite Openreach’s expansion success, BT reported a slight year-on-year revenue dip of 3% for the first half, attributing this decline to challenging conditions in non-UK markets and intensified competition within the retail space. This revenue softness led to a 10% fall in pre-tax profit and a minor downward revision in full-year revenue guidance by 1-2%. BT cited weaker trading in international markets and lower-margin kit sales as key factors impacting its earnings.
Nonetheless, BT declared a half-year dividend increase to 2.4p, supported by solid cash flows. This increase reflects BT’s confidence in its ability to meet long-term cost-savings targets and cash flow objectives. CEO Allison Kirkby expressed optimism in BT’s strategy, stating that the company’s “accelerated modernization efforts and focus on connecting the UK” position it well to create sustained value for shareholders.
On the pension front, BT continues to carry a deficit, although the gap has slightly reduced from £4.8 billion in March to £4.3 billion at the end of the half-year period. The company noted that while asset returns have not completely offset planned contributions, it remains focused on managing this liability.
BT’s ongoing investment in infrastructure and commitment to its full-fibre goals underscores its ambition to remain a central player in the UK’s telecommunications landscape, bringing enhanced connectivity to millions while navigating competitive and economic pressures.
