BT Group Reports Quarterly Sales Decline Amid Broadband Customer Losses
BT Group has revealed a notable drop in sales for its latest quarter, following the loss of 210,000 broadband customers. The telecommunications giant also reported a significant decline in pre-tax profits, largely impacted by losses associated with its TNT Sports joint venture.
Financial Performance and Customer Trends
Revenues for the quarter ending December 31 fell by 4% to £5 billion, driven by declines in service revenue and lower equipment sales, particularly in handsets. Adjusted UK service revenues specifically decreased by 2% to £3.8 billion. Pre-tax profits plummeted to £183 million, down from £427 million in the same period last year, with £214 million of losses attributed to the sports venture.
Despite these challenges, the customer decline was better than anticipated. Analysts had forecast a loss of over 230,000 broadband customers, making the actual figure of 210,000 a relative positive. BT has revised its full-year projection for Openreach fixed-line broadband customer losses to 850,000, down from an earlier estimate of 900,000.
Growth in Full Fibre and Network Expansion
In a contrasting bright spot, demand for full fibre coverage surged, with an increase of 571,000 customers during the quarter. BT highlighted that its full fibre broadband now reaches more than 21 million homes and businesses, while its 5G+ network is accessible to 69% of the UK population. Openreach achieved record full fibre connections, underscoring the company's ongoing infrastructure investments.
Leadership Commentary and Strategic Outlook
Chief Executive Allison Kirkby emphasised BT's commitment to its strategic goals, stating, "BT continues to deliver on its strategy – building and connecting the UK to the best next-generation networks at record pace, while accelerating our transformation." She noted that the consumer division added customers in broadband, mobile, and TV, leveraging brands such as EE, BT, and Plusnet.
BT stressed that it remains on track to meet its financial guidance for the current year, despite the quarterly setbacks. The TNT Sports joint venture, operated with US media giant Warner Bros Discovery, has been at the centre of a bidding war involving rivals Netflix and Paramount Skydance, adding complexity to its financial landscape.
