Key facts
- BT Group's adjusted earnings before interest, taxes, depreciation, and amortization fell 1% year over year to £2 billion in the fiscal first quarter.
- The company lost over 200,000 broadband customers in the final three months of 2025.
- BT's revenue declined 4% to £5 billion in the third quarter of its financial year.
- Pre-tax profits slumped 57% year on year to £183 million.
- BT's share of losses from its TNT Sports joint venture impacted profits by £214 million.
BT Group Plc reported a slight decline in profits for its fiscal first quarter, with adjusted earnings before interest, taxes, depreciation, and amortization falling 1% year over year to £2 billion ($2.7 billion). This decrease was attributed to lower margins in its consumer broadband and voice businesses, which offset cost-cutting measures.
In the third quarter of its financial year, BT experienced a significant customer loss, with over 200,000 customers leaving Openreach, its wholesale broadband network. The company now expects to lose a total of 850,000 broadband customers for the full financial year, a slight downward revision from previous guidance of 900,000. Revenue for the quarter fell 4% to £5 billion, and pre-tax profits slumped 57% year on year to £183 million. A substantial portion of this profit drop, £214 million, was linked to BT's share of losses from its co-owned pay TV broadcaster, TNT Sports.
Despite these challenges, BT Chief Executive Allison Kirkby stated that the company remains on track to meet its financial forecasts for the year. BT has completed all five targeted international disposals and implemented cost-cutting measures, including a 7% workforce reduction to 108,000 employees, to offset increased labor costs. The company continues to expand its full fibre broadband network, reaching 21.4 million premises and adding over 1 million premises in the quarter. Full fibre connections increased by 21% year-on-year, with a take-up rate exceeding 38%. Revenue per broadband user rose 4% to £16.80.
In separate news, Vodafone shares fell more than 6% after reporting revenue that missed expectations for its third quarter. The company's UK operations saw a 0.5% revenue decline, and it lost 73,000 mobile contract customers in its business-focused division. Vodafone noted improvements in customer churn rates since completing its takeover deal with Three UK.