REG - BT Group PLC - Results for the full year to 31 March 2026
Today 07:00
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RNS Number : 1737F BT Group PLC 21 May 2026
Allison Kirkby, Chief Executive, commenting on the results, said:
"FY26 was another year of strong delivery against BT's strategy. We are
building the UK's digital backbone even faster and further, connecting the
country like no one else and accelerating our transformation - and we know
there is much more we can do, as we create a better BT for all of us.
"Our record-breaking Openreach full fibre build hit its upgraded target and
today reaches more than two thirds of UK homes and businesses, keeping us well
on track for our 25 million milestone by the end of December. We extended our
mobile leadership further, with EE winning best mobile network in three
separate awards, bringing 5G+ to 73% of the population.
"Customer satisfaction reached a new high, with increased demand for our
next-generation products and networks. Openreach achieved record full fibre
connections and reduced line losses. And by using all our brands - BT, EE and
Plusnet - our Consumer division returned to customer growth across broadband,
mobile and TV. Our Business division has secured significant customer wins as
its transformation progresses - and we've completed five targeted non-core
disposals as we reshape BT International.
"We have delivered on our financial guidance and we are transforming ahead
of plan, offsetting headwinds while successfully competing. Today we're
announcing an increased full year dividend of 8.32 pence per share and an
updated dividend policy, and we are reiterating our guidance of sustained
growth, including cash flow inflection to c. £2.0bn in FY27 and to c. £3.0bn
by the end of the decade."
Consistently delivering against our strategic priorities in competitive
markets
- Record FTTP build of 4.8m premises passed in the year, achieving the
accelerated target set last year, the fastest build in Europe; FTTP footprint
at 23m premises, more than two thirds of all UK premises, of which 6.3m in
rural locations; on track to reach our target of 25m by December 2026
- Record customer demand for Openreach FTTP with 2.2m net adds in the year;
total premises connected total 8.8m, bringing our market-leading take-up rate
amongst all major fibre providers to over 38%; Openreach broadband ARPU in the
year grew by 4% to £16.7, driven by higher FTTP take-up, speed mix and price
increases
- Openreach broadband line losses were 203k in Q4, giving full year losses
of 825k, slightly better than our c. 850k guidance, supported by our expanded
and accelerated build; we expect losses of c. 800k in
FY27
- EE remains the UK's best mobile network, evidenced by independent industry
assessments, including Umlaut, Opensignal and RootMetrics; 5G+ population
coverage increased to 73% from 43% last year
- Retail FTTP base grew by 31% year-on-year to 4.5m, of which Consumer 4.2m
and Business 0.3m; 5G base reached 14.5m, up 10% year-on-year; BT brand
reintroduced with new products across Consumer and Business segments during
May 2026
- Consumer customer base growth up 26k in broadband, 104k in postpaid mobile
and 72k in TV, with stable to falling churn
- Consumer ARPU down 1% to £41.7 in broadband and down 1% to £19.3 in
postpaid mobile year-on-year in a competitive market; Consumer fixed and
mobile convergence(1) increased to 26.6% from 24.6% last year
- Business achieved significant new connectivity & security wins
including BAE Systems, NIE Networks and easyJet, and is partnering with Nscale
to deliver sovereign AI data centres in the UK
- International refocused following completion of five planned divestments
with ongoing rationalisation of footprint, products, overseas network and IT
estate
- Transformation delivering ahead of plan, realising cost savings while
improving customer journeys; £580m gross annualised cost savings achieved
during FY26 at a cost to achieve of £336m, taking total savings over two
years to £1.5bn at costs of £0.8bn; we realised year-on-year reductions in
energy usage in our networks of 6%, in total labour resource of 7% to 108k and
in Openreach repair volumes of 18%
- Overall transformation plan target raised to £3.7bn from £3.0bn and
extending the programme by one year to FY30, at a cost to achieve of £1.4bn
from £1.0bn
- Record BT Group NPS of 33.4, up 4.1pts year-on-year; customer satisfaction
up across all brands
1 See Glossary on page 11
Solid financial performance against outlook, dividend raised; reiterating
NFCF(1) to increase to £2bn in FY27 and £3bn by FY30
- Reported revenue £19.7bn down 3% and adjusted(1) revenue £19.6bn, down
4%, driven by lower International revenue including divestments, declines in
handset trading and declines in adjusted UK service revenue
- Adjusted UK service revenue(1) £15.4bn, down 1%, mainly driven by lower
voice volumes in Business and Consumer, offset by CPI-linked price increases
and an improved broadband FTTP mix in Openreach
- Adjusted(1) EBITDA £8.2bn, flat year-on-year, with lower revenue offset
by strong cost transformation and cost control; excluding divestments,
like-for-like adjusted EBITDA was up 1%
- Reported profit before tax £1.4bn, up 8%, with the increase primarily
driven by lower specific items, lower depreciation and amortisation, offset by
a higher finance expense
- Capital expenditure(1) £5.1bn, up 6%, reflecting higher FTTP provisioning
and build activity
- Net cash inflow from operating activities £7.0bn, up 1%; normalised free
cash flow(1) £1.5bn, down 6% due to higher cash capital expenditure, interest
costs, the absence of a prior year tax refund and working capital movements,
partly offset by working capital programmes
- Net debt £20.0bn (31 March 2025: £19.8bn), broadly stable
year‑on‑year
- Gross IAS 19 pension deficit of £4.2bn, an increase from £4.1bn at 31
March 2025, reflecting updated views on mortality and inflation, and lower
asset returns than expected, partly offset by scheduled contributions
- Final dividend of 5.87 pence per share (pps) up 2% from 5.76pps, bringing
the full year dividend to 8.32pps
- Updated dividend policy to grow the dividend by low to mid single digit
percent per annum in FY27 and onwards until metrics consistent with a BBB+
credit rating are reached; thereafter residual cash flow will be available for
enhanced distributions to shareholders
- FY27 outlook: Adjusted(1) revenue £19.0-19.5bn, adjusted UK service
revenue(1) of £15.1-£15.4bn and adjusted(1) EBITDA growth within the range
of £8.2-8.3bn; capital expenditure(1) excluding spectrum c. £4.3bn;
normalised free cash flow(1) c. £2.0bn
- Mid-term guidance: Sustained growth in adjusted(1) revenue and adjusted UK
service revenue(1), sustained growth in adjusted(1) EBITDA ahead of UK service
revenue, enhanced by cost transformation; capital expenditure(1) excluding
spectrum reducing by more than £1bn from the FY26 level; normalised free cash
flow(1) of c. £3.0bn by the end of the decade
Full year to 31 March 2026 2025 Change
Reported measures £m £m %
Revenue 19,654 20,358 (3)
Profit before tax 1,436 1,334 8
Profit after tax 1,077 1,054 2
Basic earnings per share 11.0p 10.8p 2
Net cash inflow from operating activities 7,030 6,989 1
Full year dividend 8.32p 8.16p 2
Capital expenditure(1,2) 5,127 4,857 6
Adjusted measures £m £m %
Adjusted(1) revenue 19,646 20,370 (4)
Adjusted UK service revenue(1) 15,445 15,568 (1)
Adjusted(1) EBITDA 8,230 8,209 -
Adjusted(1) basic earnings per share 18.3p 18.8p (3)
Normalised free cash flow(1) 1,508 1,598 (6)
Capital expenditure(1) excluding spectrum 5,114 4,857 5
Net debt(1) 19,966 19,816 1
1 See Glossary on page 11
2 Includes spectrum investment of £13m
Customer-facing unit updates
Adjusted(1) revenue Adjusted UK service revenue(1)
Full year to 31 March 2026 2025 Change 2026 2025 Change
re-presented(2) re-presented(2)
£m £m % £m £m %
Consumer 9,494 9,695 (2) 7,853 7,888 -
Business 5,257 5,348 (2) 4,803 4,847 (1)
International 2,114 2,499 (15) - - -
Openreach 6,190 6,156 1 6,190 6,156 1
Other 13 12 n/m 12 12 n/m
Intra-group items (3,422) (3,340) 2 (3,413) (3,335) 2
Total 19,646 20,370 (4) 15,445 15,568 (1)
Adjusted(1) EBITDA Normalised free cash flow(1)
Full year to 31 March 2026 2025 Change 2026 2025 Change
re-presented(2) re-presented(2)
£m £m % £m £m %
Consumer 2,602 2,644 (2) 1,273 1,025 24
Business 1,266 1,331 (5) 530 540 (2)
International 145 205 (29) (117) (34) (244)
Openreach 4,225 4,029 5 792 839 (6)
Other (8) - n/m (970) (772) n/m
Total 8,230 8,209 - 1,508 1,598 (6)
Adjusted(1) revenue Adjusted UK service revenue(1) Adjusted(1) EBITDA
Fourth quarter to 31 March 2026 2025 Change 2026 2025 Change 2026 2025 Change
re-presented(2) re-presented(2) re-presented(2)
£m £m % £m £m % £m £m %
Consumer 2,342 2,361 (1) 1,958 1,928 2 678 659 3
Business 1,371 1,327 3 1,254 1,219 3 302 320 (6)
International 482 672 (28) - - - 29 60 (52)
Openreach 1,519 1,505 1 1,519 1,505 1 1,025 942 9
Other 3 2 n/m 3 2 n/m (8) (7) n/m
Intra-group (853) (818) 4 (850) (818) 4 - - -
Total 4,864 5,049 (4) 3,884 3,836 1 2,026 1,974 3
Performance against FY26 outlook
FY26 outlook FY26 performance
Adjusted(1) revenue c. £20bn £19.65bn
Adjusted UK service revenue(1) £15.3-£15.6bn £15.45bn
Adjusted(1) EBITDA £8.2-£8.3bn £8.23bn
Capital expenditure(1) excluding spectrum c. £5.0bn £5.11bn
Normalised free cash flow(1) c. £1.5bn £1.51bn
Prior period comparatives
Throughout this release, comparative financial information for the full year
to 31 March 2025 ('FY25') has been re-presented to reflect the formation of
the new International CFU and re-presentations of segmental revenue to reflect
the nature of services and trading relationships between CFUs. Note 16 on page
29 and Additional Information on page 33 presents a bridge between financial
information for the full year to 31 March 2025 as published on 22 May 2025,
and the comparatives presented in this release. For further information see
bt.com/about (https://www.bt.com/about) for a separate publication covering
the formation of International.
1 See Glossary on page 11
2 FY25 comparative information for the Business CFU has been re-presented to
reflect the formation of the new International CFU and re-presentations of
segmental revenue to reflect the nature of services and trading relationships
between CFUs. Note 16 on page 29 presents a bridge between financial
information for the full year to 31 March 2025 as published on 22 May 2025,
and the comparatives presented in this release.
Overview of the full year to 31 March 2026
Progress against our strategic priorities
Our ambition is to be the UK's most trusted connector of people, business and
society. We will do this by building the best, most trusted digital networks,
by connecting customers so they thrive as we grow in a digital world, and by
accelerating our modernisation to restore leadership in everything we do.
We made significant progress against our strategy in FY26. Highlights include:
Build
- The best FTTP everywhere in the UK. Reaching over two-thirds of the UK and
on track for 25m premises by December 2026
- The best, most resilient mobile network. 5G+ population coverage now at
73%, up from 43%
- The best network that differentiates us from competition. Triple quality
award wins, reinforcing network performance quality
- Leadership in network innovation for the country. First to provide
end-to-end sovereign offering for the UK
Connect
- The most loved and trusted brands. Consumer customer base growth across
mobile, broadband and TV
- The best connectivity products for life and work. Leadership in safety,
security and protection; Business wins with BAE Systems, NIE Networks, and
easyJet; partnerships with Nscale and CrowdStrike
- The most effortless, personalised experiences. Record Group NPS of
33.4pts, improving across all brands
- The best partners for solutions beyond connectivity. Cisco Partner of the
Year; Strong partnerships with Apple, Samsung, Google, Microsoft and others
Accelerate
- One team with a customer-first delivery culture. Employee engagement above
UK benchmarks and remains strong
- A radically simpler portfolio, products and platforms. Transformation
ahead of plan with £1.5bn savings delivered at a cost to achieve of £0.8bn
since launch; overall transformation plan extended by one year to FY30 and
target raised to £3.7bn
- IT, enabled by data and AI, as a real competitive advantage. Customer
journey simplification, with developing AI initiatives, delivering reduced
cost to serve
- Trusted leader for digital inclusion, resilience and sustainability. We've
reached 23.3 million people with digital skills help since 2015
Financial outlook
- We remain well-positioned to deliver a strong increase in cash flow and
value through delivery of our UK-focused strategy
- In FY27 we expect adjusted(1) revenue of £19.0-19.5bn and adjusted UK
service revenue(1) of between £15.1bn and £15.4bn which includes a c.
£150-200m headwind from voice as we move towards PSTN closure, with
adjusted(1) EBITDA growth to within the range of £8.2-£8.3bn. Capital
expenditure(1) excluding spectrum is expected to be around £4.3bn, with
normalised free cash flow(1) of £2.0bn
- In the mid-term, from FY28-FY30, we expect sustained growth in adjusted(1)
group revenue and adjusted UK service revenue(1) as the voice drag abates, and
sustained growth in adjusted(1) EBITDA ahead of UK service revenue, enhanced
by cost transformation. By the end of the decade capital expenditure(1)
excluding spectrum will reduce by more than £1bn from the FY26 level and we
expect to deliver c. £3.0bn in normalised free cash flow(1)
Dividend
- We are today declaring a final dividend of 5.87 pence per share (pps),
increasing our full year dividend to 8.32pps, a year-on-year increase of 2%
(FY25: 8.16pps)
- The Board has adopted a new policy to grow the dividend by low to mid
single digit percent per annum in FY27 and onwards until metrics consistent
with a BBB+ credit rating are reached; thereafter residual cash flow will be
available for enhanced distributions to shareholders
- The Board expects to continue to declare two dividends per year with the
interim dividend being fixed at 30% of the prior year's full year dividend
- The dividend will be paid on 9 September 2026 to shareholders on the
register of members on 7 August 2026. The ex-dividend date will be 6 August
2026
FY27 outlook Mid-term guidance
Adjusted(1) group revenue £19.0-£19.5bn Sustained growth
Adjusted UK service revenue(1) £15.1-£15.4bn Sustained growth
Adjusted(1) EBITDA Growth, £8.2-£8.3bn Sustained growth ahead of UK service revenue, enhanced by cost transformation
Capital expenditure(1) excluding spectrum c. £4.3bn Reduces by >£1bn from FY26 level
Normalised free cash flow(1) c. £2.0bn c. £3.0bn by end of decade
Dividend Low to mid-single digit growth Low to mid-single digit growth until metrics consistent with BBB+ are reached;
thereafter residual cash flow will be available for enhanced distributions
1 See Glossary on page 11.
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