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BT Group’s adjusted revenue dropped 2 per cent to £5.1 billion in Q1.
The decline was due to legacy managed contract declines, reduced low margin sales activity and contraction in the portfolio unit within its business segment and the continued shift to mobile SIM only and a lower CPI benefit in a competitive market in its consumer segment.
BT business segment’s adjusted revenue was also down 5 per cent from £2 billion to £1.9 billion for the three months to 30 June 2024.
The company’s reported profit before tax fell too by 3 per cent to £520 million, with the decreased revenue broadly offset by a reduction in reported operating costs.
However, the group’s adjusted EBITDA was up 1 per cent from £2 billion to £2.1 billion as it realised the benefits of its transformation and tight cost control, including lower staff costs, partly offset by revenue decline. Conversely, its business segment’s adjusted EBITDA declined from £386 million to £378 million.
BT also passed a record more than 1 million premises with its FTTP build in the quarter at an average build rate of 78,000 per week. Its FTTP footprint now stands at 15 million, with 15 million rural premises passed and a further around 6 million where ethe initial build is underway.
The company’s FTTP customer base also surpassed 5 million in Q1, with orders up 29 per cent year-on-year and take-up rate at 34 per cent with continued strong net adds of 387,000. Its retail FTTP base increased 36 per cent y-o-y to 2.7 million, 100,000 of which was on the business side.
Additionally, Openreach broadband average revenue per user grew by 6 per cent y-o-y as a result of price rises and increased FTTP volumes.
Allison Kirkby, BT Group’s chief executive, said, “We’ve made a solid start to the year, with excellent growth in both fibre build and connections, and increased EBITDA.
“Openreach continues to build at pace and with even more efficiency, passing the milestones of 5 million connections and - just yesterday - 15 million premises built. In consumer, the widespread availability of FTTP and 5G combined with our new EE propositions has contributed to an improved trend in our customer base, in what remains a very competitive market. In business, we also saw improved trends, as we continue to modernise our portfolio and our operations towards a simpler business, delivering secure, cloud-based connectivity and communication services for all our customers.
“Our ongoing cost transformation contributed to EBITDA growth, and more than offset the expected revenue declines in consumer and business in the quarter. There is much more to do to simplify BT Group and deliver for our customers. We remain on track to deliver our financial outlook for this year and our cash flow inflection to c. £2 billion in 2027 and c. £3 billion by the end of the decade.”