BT.A Bt Group Plc

Trading update for the quarter and nine months to 31 December 2024

BT Group plc - 30 January 2025

Continued progress on strategic priorities:

•   Record FTTP build rate of over 1m premises passed in the quarter for a fourth consecutive quarter; FTTP footprint reached 17m premises, more than half of the UK; on track to pass 4.2m in FY25 and reach 25m by December 2026

•   Record customer demand for Openreach FTTP with net adds of 472k in the quarter; total premises connected 6.0m with a growing take up rate of over 35%. Openreach total broadband lines fell by 208k, as we continue to see moderately higher competitor losses with a weaker overall broadband and new homes market; over 80% of our line losses occur where we have not built FTTP

•   Openreach broadband ARPU in the quarter grew year on year by 6% to £16.1, ahead of the CPI price increases, driven by a greater FTTP take-up and speed mix

•   Retail FTTP base grew by 33% year on year to 3.2m of which Consumer 3.0m and Business 0.2m

•   Consumer service revenue returned to growth, up 0.4% year on year after a 1.3% decline in H1; service revenue growth was more than offset by a 12% decline in equipment revenue, mainly handset trading

•   Consumer customer base relatively stable with broadband base down 40k quarter on quarter (0.5% decline); postpaid mobile base down 4k quarter on quarter (<0.1% decline)

•   Consumer broadband ARPU down 1.2% year on year to £40.6; Consumer postpaid mobile ARPU up 5.7% year on year to £20.3

•   Consumer fixed and mobile convergence grew in the quarter from 23.1% to 23.4%; 5G standalone launched in a further 16 new locations, bringing 5G standalone to over 30 major UK towns and cities; EE was named the winner of the umlaut connect 2025 Mobile Network Test in the UK for a 10th consecutive year

•   Business revenues were stable in our core UK channels; £1.3bn contract signed with the Home Office to continue providing mobile services for the Emergency Services Network over the next seven years

•   Cost transformation remains on track as we continue to create a simpler BT Group, delivering efficiencies across all units; energy usage in our networks was down 3% in the year-to-date and total labour resource down 3% year-on-year to 117k; we achieved an 11% reduction in year-to-date Openreach repair volumes

•   BT Group NPS of 29.6, up 4.0pts during Q3, reflecting ongoing improvements in customer experience

Excellent cost control continues to deliver EBITDA growth:

•   Q3 Adjusted¹ revenue £5.2bn, down 3% year-on-year mainly due to continued challenging non-UK trading conditions in our Global and Portfolio channels and weaker handset trading in Consumer, offsetting the impact of FTTP growth in Openreach and price increases. Reported revenue £5.2bn, down 3%

•   Q3 Adjusted¹ EBITDA £2.1bn, up 4% driven by strong cost transformation and one-off other operating income in the low tens of millions which more than offset adverse revenue

•   Q3 Reported profit before tax of £427m, up 1% primarily due to EBITDA growth, offset partially by increased net finance costs and increased depreciation and amortisation

•   Reconfirming our FY25 financial outlook and our mid-term guidance

¹   See Glossary on page 2

¹   See Glossary below

² As disclosed in the prior year, Q3 FY24 results included a correction of H1 FY24 revenue across Openreach and Business, with no impact on total group revenue. £38m external wholesale revenue was incorrectly recognised by Business in H1 FY24. H1 FY24 results were not restated; the correction was booked within Q3 FY24 to ensure the results for the nine months to 31 December 2023 were correctly stated. Excluding the adjustment, Q3 Business revenue would have declined 4%, while intra-group items would have increased 4%.

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