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Highlights
- FTTP Growth Accelerates: Over 1 million premises passed for the fourth consecutive quarter, reaching 17 million total.
- Revenue & Profit Update: Adjusted revenue at £5.2 billion (-3% YoY), while EBITDA grew 4% to £2.1 billion due to strong cost controls.
- Stable Business Performance: £1.3 billion contract secured with the UK Home Office for Emergency Services Network.
BT Group plc (LSE:BT.A) has provided a trading update for the third quarter and nine months ending 31 December 2024, showcasing continued progress in strategic initiatives, strong FTTP rollout, and disciplined cost management leading to EBITDA growth.
Record-Breaking FTTP Expansion
BT’s Openreach division achieved a record FTTP (Full Fibre to the Premises) build rate, passing over 1 million premises in Q3 for the fourth consecutive quarter. This brings its total FTTP footprint to 17 million premises, covering more than half of the UK. The company remains on track to pass 4.2 million premises in FY25 and aims to reach 25 million by December 2026.
Openreach also recorded a net addition of 472,000 FTTP customers, with total FTTP connections now at 6 million and a growing take-up rate of over 35%. However, Openreach’s total broadband lines declined by 208,000 due to moderate customer losses to competitors, particularly in areas where BT has yet to build FTTP.
Consumer and Business Performance
- Consumer Broadband: FTTP subscribers grew 33% year-on-year to 3.2 million, including 3 million residential and 200,000 business customers.
- Revenue Trends: Consumer service revenue grew 0.4% YoY, reversing a 1.3% decline in H1, but was offset by a 12% drop in handset sales.
- ARPU Performance:
- Consumer broadband ARPU declined 1.2% YoY to £40.6.
- Postpaid mobile ARPU rose 5.7% YoY to £20.3.
- 5G Expansion: 5G standalone services were launched in 16 new locations, expanding EE’s 5G coverage to over 30 major UK towns and cities. EE also secured the top spot in umlaut connect’s Mobile Network Test for the 10th consecutive year.
On the business front, BT secured a £1.3 billion contract with the UK Home Office to continue providing mobile services for the Emergency Services Network over the next seven years.
Cost Transformation & Profitability Growth
BT continues to execute its cost transformation strategy, delivering 4% EBITDA growth to £2.1 billion despite a 3% YoY decline in revenue. Cost-saving initiatives included:
- Energy efficiency: Network energy usage fell 3% year-to-date.
- Labour force optimization: Total workforce reduced by 3% YoY to 117,000 employees.
- Operational improvements: Openreach repair volumes reduced by 11% in the year to date.
- Customer Satisfaction: BT Group’s Net Promoter Score (NPS) improved by 4 points to 29.6, reflecting enhanced customer service.
Financial Outlook
For Q3, adjusted revenue stood at £5.2 billion (-3% YoY) due to global market challenges and weaker handset trading. However, strong cost control measures contributed to a 1% rise in reported pre-tax profit to £427 million. The company reaffirmed its FY25 financial targets and mid-term guidance, emphasizing continued operational improvements and FTTP expansion.
