BT Group PLC (LSE:BT.A) held guidance for 2024 after a modest rise in revenue in the financial first quarter but forecast a drop in broadband customers due to competitor losses and a weak broadband market.
Philip Jansen, chief executive, said: “We've made a strong start to the year, in what remains a very competitive market, with improved customer satisfaction, pro forma revenue growth in all of our business units and pro forma group EBITDA up by 5%.”
In the three months to 30 June 2023, the telco said pro-forma adjusted revenue rose 4% to £5.2bn due to increased fibre-enabled product sales and price increases in Openreach, increased service revenue in Consumer and improved equipment trading in Business, offset partially by legacy product declines.
Pro forma adjusted EBITDA rose 5% to £2.0bn, with revenue flow through and cost control more than offsetting cost inflation, while reported pre-tax profit climbed 11% to £536mln, primarily due to EBITDA growth.
The firm expanded its fibre to the premises footprint to 11mln premises, 44% of the way to its 25mln target, with a further 6.2mln where initial build is underway.
BT said Openreach broadband average revenue per user grew 10.2% year on year but the broadband base fell 126,000 in the quarter due to tough competition, a weak broadband market and communications providers ceasing copper lines.
BT continues to expect the Openreach broadband base to decline by around 400,000 in the financial year 2024.
Jansen added: “We continue to drive transformation across the group, and while there remains much to do it's clear that our strategy is working and BT Group is set up for success."