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BT Group plc (LSE:BT.A) has announced its financial and operational performance for the recent quarter, highlighting significant achievements in its strategic priorities and transformation efforts.
Record FTTP Build and Customer Growth
BT Group continues to make substantial progress in its fiber-to-the-premises (FTTP) rollout, with a record of over 1 million premises passed during the quarter. This achievement reflects an average build rate of 78,000 premises per week. The company’s FTTP footprint now extends to 15 million premises, including 4.2 million in rural areas. Additionally, initial build efforts are underway for approximately 6 million more premises.
The FTTP customer base surpassed 5 million during the quarter, driven by strong demand. Orders for FTTP services have surged by 29% year-on-year, and the take-up rate has reached 34%. BT Group reported a net increase of 387,000 FTTP customers, demonstrating robust growth in this segment.
Financial Performance: EBITDA Growth Amidst Revenue Decline
For the quarter, BT Group reported adjusted revenue of £5.1 billion, marking a 2% decrease compared to Q1 FY24. This decline is attributed to a reduction in legacy managed contracts, decreased low-margin sales activity, and a contraction in the portfolio unit within the Business segment. Additionally, the shift towards mobile SIM-only plans and a lower consumer price index (CPI) benefit in a competitive market also impacted revenue. However, these declines were partially offset by price increases and growth in the FTTP and Ethernet bases within Openreach. The reported revenue was £5.0 billion, down 2% from the previous period.
Adjusted EBITDA rose by 1% to £2.1 billion, reflecting the benefits of transformation efforts and tight cost control, including reduced staff costs. This growth in EBITDA was achieved despite the revenue decline. The reported profit before tax was £520 million, a decrease of 3%, with reduced operating costs mitigating some of the revenue shortfall.
Outlook and Company Profile
BT Group reaffirmed its financial outlook for FY25, maintaining its previous guidance. The company's strategic focus on FTTP expansion and cost management continues to drive operational efficiency and financial performance.
As the UK’s leading provider of fixed and mobile telecommunications, BT Group offers a comprehensive range of digital products, solutions, and services. The company also delivers managed telecommunications, security, and IT infrastructure services to customers across 180 countries. With its ongoing investments in fiber infrastructure and a commitment to transformation, BT Group is well-positioned to sustain its leadership in the telecommunications sector.
