BT has published its results for the half year to September 30th. The telco described its revenue as being “relatively resilient” at £10.59 billion (€11.74bn), down 8 per cent – largely attributed to the impact of Covid-19 including reduced BT Sport revenue and a reduction in business activity in its enterprise units, and declines in legacy products.
BT said that its roll out of fibre broadband had reached record levels of 40,000 premises a week in the second quarter. In total, it has now provided fibre networks to over 3.5 million UK households.
Key strategic developments:
Philip Jansen, Chief Executive, commented: “BT delivered financial results in-line with expectations for the first half of the year, thanks to strong operational performance during exceptional circumstances. Customer demand during the pandemic has shown how critical our networks have become, and our significant network investments have helped us double the number of Openreach’s FTTP orders compared to this time last year and have seen our leading 5G network expand to 112 towns and cities across the UK.”
“We continue to invest to make BT more competitive and I’m pleased to see the quality of our products and services improving. At the same time we are firmly on track with the delivery of our modernisation programme and have delivered £352 million in cost savings in the first half of the year.”
“This performance has given us confidence to raise the lower end of our EBITDA outlook range for this year and publish an EBITDA expectation of at least £7.9 billion for 2022/23, with sustainable growth from this level forward. This growth will be driven by the continued recovery from Covid-19, enhanced by sales of our converged and growth products, and by significant savings from our modernisation and cost saving programme. In combination these factors will more than offset legacy product declines.”
“The growth in EBITDA underpins the planned reinstatement of our dividend next year whilst ensuring that we can continue to drive value-creating investments in our networks and products,” he concluded.