BT Group PLC (LSE:BT.A) shares rose 3.5% after the telecoms group reaffirmed its full-year and mid-term financial guidance, despite profit falling 10% and Openreach broadband lines falling.
The FTSE 100 group reported revenue of £4.9 billion for the quarter to 30 June, down 3% year-on-year due to weaker mobile handset sales and continued "challenging" international trading.
This offset the benefit from price increases and growth from full-fibre broadband at Openreach, where net customer adds were up 46% to 566,000, but broadband lines declined by 169,000, which BT said was in line with expectations.
Adjusted EBITDA was £2.1 billion, down 1%, with profit before tax falling 10% to £468 million, mainly due to higher finance costs and depreciation.
The company's workforce was cut 5% to 113,000 as the board pushed through cost efficiencies, which were said to "fully offset" increases in the minimum wage and increased National Insurance contributions.
Chief executive Allison Kirkby said it was "a solid start to the year" as she looks to continue her transformation and "radically simplify our business while improving customer experience".
BT also announced that Patricia Cobian will become its new group chief financial officer in 2026, succeeding Simon Lowth, who will retire after nine years in the role.
Cobian, currently CFO of Virgin Media O2, will join the board and executive committee next year, with a formal start date to be confirmed in due course. Lowth will remain in post during a managed transition period, the company said.