REG - BT Group PLC - Trading Statement

BTAnnouncement

24/07/2025 07:00

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RNS Number : 3227S  BT Group PLC  24 July 2025

 

Trading update for the three months to 30 June 2025

BT Group plc - 24 July 2025

 Allison Kirkby, Chief Executive, commenting on the results, said:

 "BT has had a solid start to the year, with our full fibre broadband now
 reaching more than 19 million homes and businesses and our 5G network
 available to over 87% of the UK population. We're seeing strong customer
 demand for our next-generation broadband and mobile connectivity across all
 our brands, with record Openreach fibre take-up again this quarter. And we're
 delivering on our transformation, as we radically simplify our business while
 improving customer experience.

 "BT is investing more than anyone else in the nation's networks, we're
 connecting customers faster, and we're on track to deliver our targets for
 this year, next year, and the end of the decade - creating a better BT, for
 all of us."

Strategic priorities delivering to plan:

•   More than 1m premises passed with FTTP for a sixth consecutive
quarter, at an average build rate of 81k per week, on track to achieve up to
5m this fiscal year; FTTP footprint reached more than 19m premises, of which
5.2m in rural locations

•   Record customer demand for Openreach FTTP with net adds up 46%
year-on-year to 566k; total premises connected 7.1m, increasing our
market-leading take up rate to 37%; Hyperoptic has entered into a wholesale
agreement with Openreach, further extending its national footprint; Openreach
broadband ARPU up 4% to £16.6, driven by higher FTTP take-up, speed mix and
price increases

•   Openreach broadband lines fell by 169k, driven by losses to
competitors and a weaker broadband market; our full year expectation remains
unchanged from that given in May

•   Retail FTTP base grew by 32% year-on-year to 3.7m of which Consumer
3.4m and Business 0.3m; 5G base reached 13.5m, up 12% year-on-year

•   Consumer customer base grew in the quarter, with broadband base up 11k
and postpaid mobile base up 41k; Consumer broadband ARPU(2) down 2%
year-on-year to £41.9 and postpaid mobile ARPU(2) of £19.4 broadly flat
year-on-year, and we continue to expect a similar seasonal growth pattern as
FY25; Consumer fixed and mobile convergence grew to 25.5% from 24.6% last
quarter; EE proud to be sponsors of the Lionesses as they head towards the
UEFA Euro 2025 final

•   Business adjusted UK service revenue down 2%, stable excluding
traditional voice; EBITDA pressure was mainly in the international segment;
Business will be reported as two separate customer-facing units from Q2 FY26
for our UK and International operations

•   Cost transformation delivered efficiencies across all units, fully
offsetting higher employer costs of National Living Wage and National
Insurance: year-on-year energy usage in our networks was down 5%, total labour
resource was down 5% to 113k and Openreach repair volumes were down 14%

•   BT Group NPS of 30.4, up 5.6pts year-on-year, with improved customer
experience across all our customer facing units

 

On track to achieve full year guidance:

•   Reported and adjusted revenue(1) £4.9bn, down 3% year-on-year mainly
due to weaker handset sales in Consumer and continued challenging
international trading, offsetting the benefit of FTTP growth in Openreach and
price increases; Adjusted UK service revenue(1) £3.9bn, down 1%, largely due
to the seasonal impact of price changes in Consumer and traditional voice in
Business

•   Adjusted EBITDA(1) £2.1bn, down 1% with adverse revenue offset by
strong cost transformation

•   Reported profit before tax of £468m, down 10% primarily due to an
increase in net finance costs and depreciation and amortisation

•   Reconfirming all FY26 and multi-year financial outlook metrics

( )

                                    Adjusted revenue(1)                                    Adjusted UK service revenue(1)                                Adjusted EBITDA(1)
 First quarter to 30 June 2025      2026     2025     Change                               2026         2025         Change                              2026     2025     Change
                                    £m       £m       %                                    £m           £m           %                                   £m       £m       %
 Consumer                           2,332    2,399                    (3)                  1,962        1,991                        (1)                 636      659                      (3)
 Business(3)                        1,802    1,909                    (6)                  1,155        1,182                        (2)                 344      378                      (9)
 Openreach                          1,566    1,558        1                                1,566        1,558            1                               1,068    1,021        5
 Other                              3        3        n/m                                  2            3            n/m                                 2        3        n/m
 Intra-group items(3)               (824)    (817)                    (1)                  (824)        (817)                        (1)                 -        -              -
 Total                              4,879    5,052                    (3)                  3,861        3,917                        (1)                 2,050    2,061                    (1)
 Of which International(1) revenue  545      608                      (10)

(1)  See Glossary on page 2

(2)  As reported at Q4 FY25, broadband and postpaid mobile ARPUs for Q1 FY25
have been restated following a reassessment of the EE One treatment which
resulted in a reclassification of revenues between product types.

(3)  Following a review of trading relationships relating to a number of
Openreach pass-through services, a number of customers were transferred from
Business to Openreach. Q1 FY25 has been restated to remove £24m revenue from
Business. There is no impact on Openreach segmental results as the revenue was
previously classified as internal so was already included in Openreach
results; there is a contra entry through intra-group items.

n/m: comparison not meaningful

( )

( )

 

 

Glossary

Our commentary focuses on the trading results on an adjusted basis. This is
consistent with the way that financial performance is measured by management
and reported to the Board and the Executive Committee and assists in providing
a meaningful analysis of the trading results of the group. Reported revenue
and reported profit before tax are the equivalent unadjusted or statutory
measures and are reconciled in pages 228 to 230 of the Annual Report 2025.

 Adjusted revenue     Adjusted revenue is before specific items. Adjusted results are consistent
                      with the way that financial performance is measured by management and assist
                      in providing an additional analysis of the reporting trading results of the
                      group.
 Adjusted UK service  Adjusted UK service revenue comprises all UK revenue less UK equipment

                    revenue. Some
 revenue

                      revenue from equipment is included within adjusted UK service revenue where
                      this is sold

                      as part of a managed services contract or where that equipment cannot be
                      practicably

                      separated from the underlying service. Adjusted UK service revenue excludes
                      revenues

                      from our International channel within our business segment as they are
                      international in nature.
 Adjusted EBITDA      Earnings before interest, tax, depreciation and amortisation, before specific
                      items, share of post tax profits/losses of associates and joint ventures and
                      net finance expense.
 International        International comprises our Global channel and international elements of our
                      Portfolio channel within our Business segment. International will be reported
                      as a separate CFU from Q2 FY26.
 Specific items       Items that in management's judgement need to be disclosed separately by virtue
                      of their size, nature or incidence. In the current quarter these relate to our
                      assessment of our provision for historic regulatory matters, restructuring
                      charges, divestment-related items, Sports JV-related items and net interest
                      expense on pensions. In determining whether an event or transaction is
                      specific, management considers quantitative as well as qualitative factors
                      such as the frequency or predictability of occurrence.

 

About BT Group

BT Group is the UK's leading provider of fixed and mobile telecommunications
and related secure digital products, solutions and services.

BT Group consists of three customer-facing units: Consumer serves individuals
and families in the UK; Business covers companies and public services;
Openreach is an independently governed, wholly owned subsidiary wholesaling
fixed access infrastructure services to its customers - over 700
communications providers across the UK.

British Telecommunications plc is a wholly owned subsidiary of BT Group plc
and encompasses virtually all businesses and assets of the BT Group. BT Group
plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about

 

Registered in England and Wales no. 4190816

Enquiries

 Press office:        Jackie Bates  Email: media@bt.com  Tel: 07496 691 845
 Investor relations:  Nick Delfas   Email: ir@bt.com     Tel: 0800 389 4909

We are scheduled to announce the second quarter and half year results for FY26
on 6 November 2025.

Forward-looking statements - caution advised

Certain information included in this announcement is forward looking and
involves risks, assumptions and uncertainties that could cause actual results
to differ materially from those expressed or implied by forward looking
statements. Forward looking statements cover all matters which are not
historical facts and include, without limitation, projections relating to
results of operations and financial conditions and the Company's plans and
objectives for future operations. Forward looking statements can be identified
by the use of forward looking terminology, including terms such as 'believes',
'estimates', 'anticipates', 'expects', 'forecasts', 'intends', 'plans',
'projects', 'goal', 'target', 'aim', 'may', 'will', 'would', 'could' or
'should' or, in each case, their negative or other variations or comparable
terminology. Forward looking statements in this announcement are not
guarantees of future performance. All forward looking statements in this
announcement are based upon information known to the Company on the date of
this announcement. Accordingly, no assurance can be given that any particular
expectation will be met and readers are cautioned not to place undue reliance
on forward looking statements, which speak only at their respective dates.
Additionally, forward looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority), the Company
undertakes no obligation to publicly update or revise any forward looking
statement, whether as a result of new information, future events or otherwise.
Nothing in this announcement shall exclude any liability under applicable laws
that cannot be excluded in accordance with such laws.

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