Trading update for the three months
to 30 June 2024
BT Group plc - 25 July
2024
|
Allison Kirkby, Chief Executive, commenting on the results,
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. £2.0bn in 2027 and c. £3.0bn by
the end of the decade."
|
Strategic priorities delivering to plan:
• Record FTTP build of over 1m premises
passed in the quarter at an average build rate of 78k per week;
FTTP footprint is now
15m with 4.2m rural premises passed and
around a further 6m where initial build is underway
• FTTP customer base surpassed 5m during
the quarter; strong FTTP demand with orders up 29% year-on-year;
take up rate is at 34% with continued strong net adds of
387k
• Openreach broadband ARPU grew by 6%
year-on-year due to price rises and increased volumes of FTTP;
Openreach broadband line losses of 196k, with moderately higher
competitor losses combined with a weaker overall broadband and new
homes market
• Consumer broadband ARPU up 1%
year-on-year to £42.4 and Consumer postpaid mobile ARPU increased
0.5% year-on-year to £19.8, with positive mix effects offsetting
the expected tougher pricing comparative
• Consumer base trend improved despite a
competitive market, with the broadband base down 28k
quarter-on-quarter (0.3% decline) and postpaid mobile base down 15k
quarter-on-quarter (0.1% decline)
• Business financial performance
continues to be impacted by legacy managed
contract declines, reduced low margin sales activity and
contraction in the portfolio unit offset by cost
transformation
• Retail FTTP base grew year-on-year by
36% to 2.7m of which Consumer 2.6m and Business 0.1m; 5G base 11.3m, up 22%
year-on-year
• BT Group NPS of 25.1, up 0.3pts
year-on-year, demonstrating further improving customer
experience
• BT
Group has been recognised by TIME Magazine and Statista as one of
the "World's Most Sustainable
Companies 2024"
Transformation and tight cost control
delivers EBITDA growth:
• Adjusted1 revenue £5.1bn,
down 2% on Q1 FY24 due to legacy managed contract declines, reduced
low margin sales activity and contraction in the portfolio unit
within Business, and the continued shift to mobile SIM only and a
lower CPI benefit in a competitive market in Consumer. This is
partly offset by price increases and FTTP and Ethernet base growth
in Openreach; reported
revenue £5.0bn was down 2%
• Adjusted1 EBITDA £2.1bn, up
1% with transformation and tight cost control, including lower
staff costs, partly offset by revenue decline
• Reported profit before tax of £520m,
down 3%, with decreased revenue broadly offset by reduction in
reported operating costs
• Reconfirming all
FY25 financial outlook
metrics
|
|
Adjusted1
revenue
|
Adjusted1
EBITDA
|
|
Three months to 30 June
2024
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
Consumer
|
2,399
|
2,423
|
(1)
|
659
|
673
|
(2)
|
|
Business
|
1,933
|
2,027
|
(5)
|
378
|
386
|
(2)
|
|
Openreach
|
1,558
|
1,526
|
2
|
1,021
|
965
|
6
|
|
Other
|
3
|
5
|
n/m
|
3
|
9
|
n/m
|
|
Intra-group items
|
(841)
|
(817)
|
(3)
|
-
|
-
|
-
|
|
Total
|
5,052
|
5,164
|
(2)
|
2,061
|
2,033
|
1
|
1 See Glossary on page 2
n/m: comparison not
meaningful
About BT Group
BT Group is the UK's leading
provider of fixed and mobile telecommunications and related secure
digital products, solutions and services. We also provide managed
telecommunications, security and network & IT infrastructure
services to customers across 180
countries.
BT Group consists of three
customer-facing units: Consumer serves individuals and families in
the UK; Business covers companies and public services in the UK and
internationally; 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:
|
Richard Farnsworth
Alex Buckley
|
Tel: 07734 776 317
Tel: 07501 236 297
|
|
Investor relations:
|
Nick Delfas
|
Tel: 0800 389 4909
|
We are scheduled to announce the
second quarter and half year results for FY25 on 7 November
2024.
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.