BT H1 “on track”
November 3, 2022
By Colin Mann
BT Group Chief Executive Philip Jansen says the telco remains on the front foot in “turbulent times”. Announcing its half year results, Jansen said: “Our strategy is working, we’re executing against our plan and we’re confident that we’ll deliver our long-term ambition while underpinning economic growth in the UK. “
“Our financial performance is on track; we grew revenue and EBITDA in the first six months of the year and we remain laser focused on modernising and simplifying BT Group. Given the current high inflationary environment, including significantly increased energy prices, we need to take additional action on our costs to maintain the cash flow needed to support our network investments. As a result, we are increasing our cost savings target from £2.5 billion [€2.98bn] to £3.0 billion by the end of FY25.”
“High-quality connectivity has never been more important for our customers and our products provide great value for money. We continue to drive ahead with our strategy designed to deliver consistent and predictable revenue and EBITDA growth, expand cash flow and underpin our progressive dividend policy over the longer-term.”
Key strategic developments:
- FTTP build passed 8.8 million premises, including 2.8 million in rural areas, with initial build underway on a further 6m premises; weekly build rate averaging 62k premises in Q2
- FTTP connections ahead of plan; Q2 net adds of 331k with total take up of 27 per cent
- Openreach broadband base down 89k in Q2 (Q2 FY22: net adds of 29k) as a result of reduced broadband market growth and c.40k impact from industrial action, with competitor churn in line with BT’s expectations; average monthly rental ARPU grew by c.£1 year on year due to continued increase in fibre-enabled broadband
- Openreach reviewing wholesale pricing to accelerate migration to FTTP
- EE’s 5G network continues to grow with 5G deployed in nearly all UK major towns and cities
- Completed Sports JV to create one of the most extensive portfolios of premium sports in the UK
Key numbers:
- Revenue £10.4 billion, up 1 per cent as a result of growth in Consumer and Openreach partially offset by legacy declines in large corporate customers in Enterprise, lower equipment sales in Global and the impact of the BT Sport disposal
- Adjusted EBITDA £3.9 billion, up 3 per cent reflecting revenue growth, continued strong cost control and some one-off items, partially offset by increased energy costs and cost inflation
- Reported profit before tax £0.8 billion, down 18 per cent as a result of increased depreciation from network build and higher specific costs offsetting adjusted EBITDA growth