BT Group PLC (LSE:BT.A) reported first-half results broadly in line with expectations, as earnings remained flat despite a falling top line, with increased fibre take-up helping offset pressure from competitive markets and legacy declines.
Revenue came in at £9.8 billion for the six months to 30 September, down 3% on a year ago, while adjusted EBITDA was unchanged year-on-year at £4.1 billion.
Second-quarter revenue of £4.93 billion was very slightly below the average analyst forecast of £4.97 billion, while EBITDA of £2.08 billion was marginally ahead of the expected £2.04 billion.
After exiting various overseas businesses, chief executive Allison Kirkby said the focus on the UK.
She added that "radical simplification and modernisation" plans were helping offset declines from international and legacy businesses and higher labour-related costs since the start of this tax year, with cost savings totalling £247 million during the period.
Openreach saw strong fibre demand with 1.1 million net additions in the half, bringing the total premises connected to over 7.6 million.
However, broadband line losses accelerated to 242,000 in the September quarter, following losses of 208,000 and 243,000 in the two preceding quarters, highlighting continued pressure from competitors despite Openreach’s temporary pricing offer.
The company increased its interim dividend by 2% to 2.45 pence per share and reiterated its full-year guidance, including adjusted revenue of around £20 billion and EBITDA between £8.2 billion and £8.3 billion.