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BT profits and revenues dragged lower by overseas operations

Philip Jansen, chief executive, said the results were in line with expectations overall

BT Group PLC -
Mixed bag from the telecoms utility

BT Group PLC (LSE:BT.A) reported lower revenues and profits in its latest quarter as its global operations dragged on the rest of the business.

Group revenues in the three months to June 2021 fell 3% to £5.97bn with pre-tax profits 4% down at £536mln.

The global operations saw revenues drop 21% to £785mln due to foreign exchange movements and lower business activity due to Coronavirus (COVID-19). Orders for the division slumped 26% to £3.4bn.

Bright spots were BT sports, which is up for sale, while handset sales recovered and income from hospitality and retail businesses started to pick up as lockdown restrictions eased.

Broadband network Openreach also did well and notched up its best quarter so far in the rollout of its fast fibre network.

Adjusting for the UK’s new capital expenditure tax regime all but wiped out net profits,

There was also a cash outflow of £43mln as BT accelerated the speed of its superfast broadband roll-out

Philip Jansen, chief executive, said the results were in line with its expectations overall, with a good performance in the UK offsetting challenging conditions in global markets.

“Our operational performance remained strong and our EBITDA grew during the first three months of the year, reflecting improved trading across most of our business and the positive benefits of our plans to modernise BT.

"We're powering ahead with our network build programmes: Openreach has now built full-fibre broadband to more than 5m premises with growing customer demand; EE has set out plans for 5G on demand anywhere in the UK by 2028.”

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