Key facts
- BT Group reported first-quarter revenue of £4.3bn and pre-tax profit of £505m.
- The company expects to lose around 800,000 broadband customers this year.
- Full-fibre broadband now accounts for more than half of BT's broadband revenue.
- Openreach added a record 574,000 new fibre customers in the quarter.
- BT maintained its free cash flow target of approximately £2bn for the year.
BT Group is navigating a challenging period marked by an expected loss of 800,000 broadband customers, yet remains optimistic about its turnaround strategy centered on its full-fibre network. The company reported first-quarter revenue of £4.3bn, which remained largely flat, while pre-tax profit saw a 4% decline to £505m.
Despite these figures, BT maintained its free cash flow guidance of approximately £2bn for the year, signaling confidence in its investment in fibre infrastructure. Chief executive Allison Kirkby highlighted that full-fibre broadband has now surpassed half of the company's total broadband revenue for the first time, driven by a record 574,000 new fibre customers added by Openreach during the quarter. The company is on track to serve 25 million premises with fibre by the end of the year.
The results come amid increasing competition in the broadband market as BT transitions from its legacy copper network to full fibre. The company's strategy aims to convince investors that its substantial spending on fibre will lead to stronger cash generation. Earlier in the month, BT also announced a deal to combine its international business with Verizon, sharpening its focus on the UK market. The company's shares experienced a dip of up to 2.2% in early trading following the announcement.