BT Group PLC (LSE:BT.A) ramped up its full-fibre rollout in the first half of the financial year, with the broadband and telecoms giant declaring that Openreach now covers a record 16 million homes, amounting to around half of the UK population.
Following a record number of customer additions in the first half, BT Openreach’s take-up rate is now around 35%.
BT is aiming to connect 25 million homes to full-fibre broadband. This target appears comfortably within reach as this year’s rollout target has increased to 4.2 million homes.
Despite the strong take-up rate on its broadband services, BT’s revenues dipped by 3% year on year in the first half due to “our non-UK operations and a competitive retail environment”.
This led to a 10% year-on-year fall in profit before tax and a 1-2% downward revision in full-year revenue guidance, “primarily reflecting weaker non-UK trading including reduced low-margin kit sales, along with a softer environment in Corporate and Public Sector”.
A half-year dividend was nonetheless increased to 2.4p thanks to strong cash flows.
Chief executive Allison Kirkby stated: “We remain firmly on track to meet our long-term cost savings and cash flow targets, and today announce an interim dividend of 2.40 (pence per share).
“The accelerated modernisation of our operations, combined with a focus on connecting the UK, puts us in a strong position to generate significant value for all our stakeholders."
BT continues to have a pension deficit, albeit at a smaller £4.3 billion compared to £4.8 billion earlier this year in March.
The company said that asset returns were insufficient to offset scheduled contributions.