BT Group price rises lift profits above £6bn

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  • BT Group has reported a 3% increase in third-quarter adjusted revenue to £5.3 billion.
  • Openreach has expanded its fiber optic network by a record 950,000 premises
  • The results came in on the first day of new executive director, Allison Kirkby.

BT Group is on course to post profits of more than £6.1 billion for 2023, as rising prices helped to improve its most recent quarterly results.

The telecoms giant said its adjusted revenue rose a better-than-expected 3 per cent year-on-year to £5.3 billion in the three months to December.

Growth was driven by higher prices in its consumer division and broadband network arm Openreach, the latter of which saw its average revenue per customer increase by 10 per cent.

Confirmed: Telecommunications giant BT Group reiterated its annual financial targets on Thursday

Confirmed: Telecommunications giant BT Group reiterated its annual financial targets on Thursday

Openreach further benefited from the expansion of its fiber optic network from a record 950,000 premises to 13 million during the quarter.

This offset the loss of a higher-than-expected number of traditional phone lines – 369,000 so far this year.

As a result, BT’s pre-loss adjusted profit remained relatively stable at just over £2 billion for the quarter, while nine-month pre-tax profits rose 15 per cent to £1.5 billion. sterling.

The FTSE 100 company’s results come days after a class action against the company began in court, alleging it overcharged its customers.

Pressure group Collective Action on Land Lines (CALL), which brought the complaint, claims BT charged “excessive” amounts to more than 3 million landline customers, many of whom were pensioners or low-income households .

Former Ofcom executive Justin Le Patourel, who runs CALL, said customers could receive up to £400 in compensation if they win the case.

The trial is expected to last eight weeks.

BT’s results were also released on the same day that Allison Kirkby, who previously headed Swedish telecommunications company Teliatakes the helm as CEO.

Kirkby said: “BT Group delivered another quarter of revenue and EBITDA growth, while rapidly growing and upgrading customers to our full fiber and 5G broadband networks, and we remain on track. the right path to achieve our financial outlook for the year.

Scottish-born Kirkby, 56, took over from Philip Jansen, whose tenure as CEO saw BT lead a major restructuring effort, cutting costs and announcing up to 55,000 job cuts by 2030, with most jobs expected to be replaced by artificial intelligence.

In doing so, BT has invested significantly in expanding next-generation 5G and fiber mobile broadband across the UK.

Yet the company has also been affected by falling stock prices following strikes, rising energy and labor costs, and equipment removal expenses. Huawei from its network.

BT Group shares were up 1.3 per cent at 113.7p on Thursday morning, although their value had still fallen by around 43 per cent over the past two years.



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