BT Group PLC's (LSE:BT.A) full-year results show steady progress on fibre rollout and cost control, but persistent customer losses at Openreach and rising competition continue to weigh on sentiment.
Citi maintained its sell rating on the stock, with a target price of 140p compared with the current price of 177p (up 1%)
Revenue and earnings before interest, tax, depreciation and amortisation for the final quarter were slightly below consensus estimates, though free cash flow came in 5% ahead, helped by lower capital expenditure.
The fibre-to-the-premises rollout remains on track, with over one million premises added for a fifth consecutive quarter. Take-up has improved to 36%, up from 35% in the previous quarter.
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BT has increased its build target to five million premises in the year to March 2026, aiming for 25 million by the end of 2026. Capital spending will rise by about £200 million to support this, offset in part by the monetisation of the legacy copper network.
Despite this, Openreach continues to shed broadband lines. Net losses widened to 243,000 in the quarter, compared with 208,000 in the previous period and 181,000 the quarter before that.
The consumer broadband business returned to modest growth, with a net gain of 4,000 lines, following losses in the first half.
BT reiterated its medium-term free cash flow targets. But pressure is mounting from alternative network operators and the expected increase in competition from mobile virtual network operators following the Vodafone and Three merger. No further detail was provided on potential joint ventures or a carve-out of the international division.
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