BT makes 'solid start' to FY27, adjusted revenues broadly flat in Q1

(Sharecast News) - Telecommunications giant BT Group said on Thursday that it had made "a solid start to the year", posting adjusted revenues of £4.3b2n in its first trading quarter, broadly flat year‑on‑year, and adjusted underlying earnings of £2.02bn, down 1% year-on-year as lower broadband and voice margins offset "strong cost transformation". BT Group reported further progress across its fibre and mobile networks, with its FTTP footprint rising to 23.4m premises after a 514,000 quarterly build, keeping it on track to hit its 25m target by December 2026.

Openreach saw record FTTP demand, adding 574,000 net connections to reach 9.4m premises and a 40% take‑up rate, while broadband ARPU climbed 7% to £17.7 on higher fibre adoption, speed mix and price rises. Broadband lines, on the other hand, fell 192,000, with BT still expecting around 800,000 losses over the year.

BT said business service revenues stabilised, supported by strong order growth and new connectivity contracts with Scottish Water and Royal Mail, and the group also announced an international joint venture with Verizon to combine operations into a scaled global connectivity business.

The FTSE 100-listed group also stated cost‑transformation efforts delivered efficiencies across the wider business, including 8% lower network energy usage, an 8% reduction in labour resources to 94,000, and a 21% drop in Openreach repair volumes.

BT also reaffirmed its full‑year financial targets, including £19bn to £19.5bn in adjusted group revenues, £82bn to £8.3bn in adjusted unferlying earnings and roughly £2bn of normalised free cash flow.

As of 0815 BST, BT shares were down 1.66% at 192.55p.







Reporting by Iain Gilbert at Sharecast.com

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