BT Group’s share price LON:BT fell by just over -2.00% today as its 9-month trading update failed to excite the market.
In its latest trading update, BT Group demonstrated a robust approach to a difficult underlying market by focusing on a combination of strategic infrastructure development and disciplined financial management.
BT’s financial performance over the quarter reveals a mixed picture.
Adjusted revenue declined -3.0% to £5.20 billion, primarily driven by weak non-UK trading conditions and reduced handset sales.
Adjusted EBITDA increased +4.0% to £2.10 billion, profits before tax rose +1.0% to £42.0 million, and BT maintained both its full-year financial outlook and mid-term guidance.
The telecoms provider continues to invest in core areas such as its UK fibre-optic rollout, the footprint of which now covers 17 million premises, that’s more than 50.0% of the UK, and it’s on track to reach 25.0 million premises by December 2026
The company has implemented rigorous cost control measures;
Its network energy usage was reduced by -3.0%. Total labour resources decreased to 117,000 and Openreach repair volumes were down by -11.0%.
The move to full fibre optics should make the BT network more robust and reliable.
CEO Allison Kirkby’s comments pointed to a clear strategic vision for the business, with a continued focus on its UK-centric operations, its commitment to digital infrastructure investment, and a targeted cash flow improvement, that’s projected to reach £2.0 billion per annum by 2027
BT’s retail FTTP (or Fibre To The Premises) customer base grew by +33.0% year-over-year to 3.20 million Whilst its customer satisfaction NPS or Net Promoter Score (a metric used to measure customer loyalty and satisfaction) improved by +4.0 points to a score of 29.0/100.0 which is encouraging, but leaves plenty of room for improvement.
Meanwhile, Openreach broadband’s average revenue per user or ARPU increased by +6.0% to £16.10.
BT Group is executing a strategy of infrastructure investment and operational efficiency, positioning itself for sustainable long-term growth in the rapidly evolving telecommunications landscape.
BT’s share price is down by -1.70% today, though the stock has risen by +27.00% over the last year.
As the incumbent telecoms provider in the UK, the opportunities for excess growth and dramatic change in the business are relatively limited, as such the good news is very likely in the price already.
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