Trading update for the nine months to 31 December
2023
BT Group plc - 1 February
2024
Allison Kirkby, Chief Executive, commenting on the results,
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."
|
Continued strong execution of our strategy
• FTTP build rate accelerated to 73k per
week delivering a record of 950k premises passed in the quarter.
FTTP footprint is now
expanded to 13m premises with a further 6m where initial build is
underway
• Strong Openreach customer demand for
FTTP with net adds of 432k in Q3. Total premises connected
now 4.4m with increased take-up of
34%
• Openreach broadband ARPU grew by
10% year-on-year due to price rises and
increased volumes of FTTP; Openreach
broadband lines losses of 369k year to date, a 2% decline in the broadband base; ongoing weak
broadband market conditions mean losses will
exceed 400k in FY24
• Consumer broadband
ARPU increased 5% year-on-year
and Consumer postpaid mobile
ARPU increased 8% year-on-year; monthly churn for the quarter remained
stable in a competitive market with broadband and postpaid
mobile at 1.1% and
1.2% 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% to 2.4m of
which Consumer 2.3m and Business
0.1m; 5G base 10.3m, up
30% 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 adjusted1 revenue
£15.8bn, up 3% on Q3 FY23 due to price increases
and fibre-enabled product sales in Openreach, increased service
revenue1 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%
• Pro forma adjusted1 EBITDA
£6.1bn, up 3% 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
£1,498m, up 15%
• Reconfirming all FY24 financial
outlook metrics
|
Adjusted1
revenue
|
Adjusted1
EBITDA
|
Nine months to 31 December
|
2023
|
2022 Pro
forma1 re-presented1
|
Change
|
2023
|
2022 Pro
forma1 re-presented1
|
Change
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Consumer
|
7,463
|
7,193
|
4
|
2,008
|
1,930
|
4
|
Business2
|
6,127
|
6,143
|
-
|
1,209
|
1,390
|
(13)
|
Openreach
|
4,574
|
4,255
|
7
|
2,903
|
2,606
|
11
|
Other
|
12
|
24
|
(50)
|
2
|
25
|
(92)
|
Intra-group
items2
|
(2,418)
|
(2,273)
|
(6)
|
-
|
-
|
-
|
Total
|
15,758
|
15,342
|
3
|
6,122
|
5,951
|
3
|
1 See Glossary on page 2
2 Q3 results include 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. There is no impact on Openreach segmental results as the
revenue was previously classified as internal so was already
included in Openreach results; there is a
contra entry through intra-group items. H1 FY24 results have
not been restated; the correction has been booked within Q3 FY24 to
ensure the results for the nine months to 31 December 2023 are
correctly stated. The impact on the prior period is
immaterial.
|
Adjusted1
revenue
|
Adjusted1
EBITDA
|
Third quarter to 31 December 2023
|
2023
|
2022
re-presented1
|
Change
|
2023
|
2022
re-presented1
|
Change
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Consumer
|
2,560
|
2,439
|
5
|
661
|
634
|
4
|
Business2
|
2,027
|
2,102
|
(4)
|
403
|
487
|
(17)
|
Openreach
|
1,521
|
1,419
|
7
|
967
|
871
|
11
|
Other
|
4
|
10
|
(60)
|
(3)
|
15
|
(120)
|
Intra-group
items2
|
(768)
|
(758)
|
(1)
|
-
|
-
|
-
|
Total
|
5,344
|
5,212
|
3
|
2,028
|
2,007
|
1
|
1 See Glossary below
2 See footnote 2 on previous table. Excluding
the £38m correction booked in Q3 FY24, Business revenue would be
£2,065m and intra-group items would be £806m.
About BT Group
BT Group is the UK's leading
provider of fixed and mobile telecommunications and related secure
digital products, solutions and services. We also provide managed
telecommunications, security and network
& IT infrastructure services to customers across 180
countries.
BT Group consists of three
customer-facing units: Consumer serves individuals and families in
the UK; Business covers companies and public services in the UK and
internationally; Openreach is an independently governed, wholly
owned subsidiary wholesaling fixed access infrastructure services
to its customers - over 650 communications providers across the
UK.
British Telecommunications plc is a
wholly owned subsidiary of BT Group plc and encompasses virtually
all businesses and assets of the BT Group. BT Group plc is listed
on the London Stock Exchange.
For more information, visit
www.bt.com/about
Registered in
England and Wales no. 4190816
Enquiries
Press office:
|
Richard Farnsworth
Alex Buckley
|
Tel: 07734 776 317
Tel: 07501 236297
|
Investor relations:
|
Mark Lidiard
|
Tel: 0800 389 4909
|
We are scheduled to announce the
full year results for FY24 on 16
May.
Forward-looking statements - caution
advised
Certain information included in this
announcement is forward looking and involves risks, assumptions and
uncertainties that could cause actual results to differ materially
from those expressed or implied by forward looking statements.
Forward looking statements cover all matters which are not
historical facts and include, without limitation, projections
relating to results of operations and financial conditions and the
Company's plans and objectives for future operations. Forward
looking statements can be identified by the use of forward looking
terminology, including terms such as 'believes', 'estimates',
'anticipates', 'expects', 'forecasts', 'intends', 'plans',
'projects', 'goal', 'target', 'aim', 'may', 'will', 'would',
'could' or 'should' or, in each case, their negative or other
variations or comparable terminology. Forward looking statements in
this announcement are not guarantees of future performance. All
forward looking statements in this announcement are based upon
information known to the Company on the date of this announcement.
Accordingly, no assurance can be given that any particular
expectation will be met and readers are cautioned not to place
undue reliance on forward looking statements, which speak only at
their respective dates. Additionally, forward looking statements
regarding past trends or activities should not be taken as a
representation that such trends or activities will continue in the
future. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority), the Company undertakes no obligation to publicly update
or revise any forward looking statement, whether as a result of new
information, future events or otherwise. Nothing in this
announcement shall exclude any liability under applicable laws that
cannot be excluded in accordance with such laws.