BT FTTP footprint expands to 13m premises
February 2, 2024
BT has issued a trading update for the nine months to December 31st 2023.
Allison Kirkby, Chief Executive, commenting on the telco’s Q4, said: “BT Group has delivered another quarter of revenue and EBITDA growth, while rapidly building and upgrading customers to our full-fibre broadband and 5G networks, and we continue to be on track to achieve our financial outlook for the year. We are providing great digital connectivity and services, while laying the foundations for future growth that will benefit our customers, investors and the UK. As I assume the role of Chief Executive, we remain committed to our purpose and our strategic focus, and I am looking forward to leading BT Group into its next phase of development.”
Q4 highlight include:
- FTTP build rate accelerated to 73k per week delivering a record of 950k premises passed in the quarter. FTTP footprint is now expanded to 13 million premises with a further 6 million where initial build is underway.
- Strong Openreach customer demand for FTTP with net adds of 432k in Q3. Total premises connected now 4.4 million with increased take-up of 34 per cent.
- Openreach broadband ARPU grew by 10 per cent year-on-year due to price rises and increased volumes of FTTP; Openreach broadband lines losses of 369k year to date, a 2 per cent decline in the broadband base; ongoing weak broadband market conditions mean losses will exceed 400k in FY 2024.
- Consumer broadband ARPU increased 5 per cent year-on-year and Consumer postpaid mobile ARPU increased 8 per cent year-on-year; monthly churn for the quarter remained stable in a competitive market with broadband and postpaid mobile at 1.1 per cent and 1.2 per cent respectively.
- Business financial performance continues to be impacted by higher input costs, legacy declines and prior year one-offs, partly offset by cost transformation and growth in Small & Medium Business (SMB) and Security
- Retail FTTP base grew year-on-year by 46 per cent to 2.4 million of which Consumer 2.3 million and Business 0.1 million; 5G base 10.3 million, up 30 per cent year-on-year. RootMetrics named EE the UK’s best mobile network for the 21st time running.
- BT Group NPS of 25.7, up 3.6pts year-on-year, further improving customer experience.
Continued pro forma revenue and EBITDA growth year to date:
- Pro forma adjusted revenue £15.8 billion (€18.5bn), up 3 per cent on Q3 FY23 due to price increases and fibre-enabled product sales in Openreach, increased service revenue in Consumer with 2023 annual contractual price rises being aided by higher roaming and increased FTTP connections, and SMB trading momentum and price rises in Business, offset partially by legacy product declines; reported revenue was up 1 per cent.
- Pro forma adjusted EBITDA £6.1 billion, up 3 per cent with revenue flow through and cost control more than offsetting cost inflation and one-off items in the prior year.
- Reported profit before tax of £1.49 billion, up 15 per cent.
- The telco reconfirmed all FY 2o24 financial outlook metrics.