UK's BT Group revenue slightly misses on international and handset declines

BT

21/05/2026 07:10

Overview

UK telecom provider's fiscal year revenue declined 3%, slightly missing analyst expectations

Adjusted EBITDA was flat year-on-year and slightly beat analyst consensus

Company raised full-year dividend by 2% and updated dividend policy

Outlook

BT Group sees FY27 adjusted revenue of £19.0-£19.5bln

Company expects FY27 adjusted EBITDA of £8.2-£8.3bln

BT Group expects normalised free cash flow of £2.0bln in FY27

Result Drivers

INTERNATIONAL AND HANDSET DECLINES - Revenue fell due to lower International revenue from divestments and declines in handset trading and UK service revenue, mainly from reduced voice volumes

COST TRANSFORMATION - Flat adjusted EBITDA was supported by cost transformation and cost control, offsetting lower revenue

OPENREACH FIBRE GROWTH - Record full fibre build and increased FTTP take-up drove Openreach broadband ARPU higher

Company press release: ID:nRSU1737Fa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Miss*
GBP 19.65 bln
GBP 19.77 bln (13 Analysts)
FY Adjusted Revenue
GBP 19.65 bln
FY Net Income
GBP 1.08 bln
FY Adjusted EBITDA
Slight Beat*
GBP 8.23 bln
GBP 8.20 bln (12 Analysts)
FY Pretax Profit
Miss
GBP 1.44 bln
GBP 2.19 bln (10 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and 6 "sell" or "strong sell"

The average consensus recommendation for the integrated telecommunications services peer group is "buy."

Wall Street's median 12-month price target for BT Group PLC is GBp218.00, about 5.6% below its May 20 closing price of GBp230.90

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)