BT FY23: ‘Delivered on outlook’
May 18, 2023
By Colin Mann
BT has delivered on its outlook for FY23, according to the telco’s Chief Executive, Philip Jansen. Commenting on the results that BT had grown both pro forma revenue and EBITDA for the first time in six years while navigating an “extraordinary” macro-economic backdrop. “Over the last four years we have stuck firmly to our strategy and it’s working,” he asserted.
“Openreach is competing strongly and it’s clear that customers love full fibre,” he said. “The Openreach Board has reaffirmed its target to reach 25 million premises with FTTP by the end of 2026 and plans to further accelerate take-up on the network. In Consumer we’re delivering for customers with strong growth in FTTP and 5G, and we’re also seeing green shoots in B2B with a return to revenue growth in the final quarter in Global and the creation of our newly integrated Business unit.
“By continuing to build and connect like fury, digitise the way we work and simplify our structure, by the end of the 2020s, BT Group will rely on a much smaller workforce and a significantly reduced cost base. New BT Group will be a leaner business with a brighter future,” he affirmed.
BT reported an FTTP build of 702k premises passed in the quarter at an average build rate of 54k per week, with 41 per cent of its 25 million build completed; FTTP footprint of 10.3 million, up 43 per cent, with a further 6 million where initial build is underway
Customer demand in Openreach for FTTP was “extremely strong” with FY23 orders up 70 per cent year on year. The take up rate grew to 30.4 per cent with record net adds of 395k in the quarter; the base now being c.3.1 million.
There was a record quarter of Consumer FTTP connections up 50 per cent year-on-year with the base now over 1.7 million.
BT has 8.6 million 5G connections, up 62 per cent on the previous year, with its 5G network now covering 68 per cent of the population.
Revenue was £20.7 billion (€23.8bn), down 1 per cent with the growth in Openreach more than offset by decline in the other units. Reported profit before tax was £1.7 billion, down 12 per cent reflecting increased depreciation from network build and specific items, partially offset by adjusted EBITDA growth.