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BT Group PLC on Thursday said it is on track to deliver on its financial outlook during the current year, despite a drop in third quarter revenue. The London-based telecommunications group said adjusted earnings before interest, tax, depreciation and amortisation rose by 3.7% to £2.10 billion in the third quarter to December 31 from £2.03 billion a year prior. In a trading statement, BT said reported pretax profit in third-quarter was 1% higher on-year at £427 million, BT said. The Ebitda hike was ‘driven by strong cost transformation and one-off other operating income in the low tens of millions which more than offset adverse revenue’, BT explained. However, adjusted revenue declined 3.0% on-year to £5.18 billion from £5.34 billion a year prior. Hurting its top line, BT reported ‘continued challenging non-UK trading conditions in our Global and Portfolio channels’. It also said there was ‘weaker handset’ trading in its Consumer arm, which includes the EE brand. In response, shares in BT were 3.3% lower at 141.15 pence each in London on Thursday morning. The wider FTSE 100 was up 0.1%. Chief Executive Allison Kirkby said: ‘Benefits from our cost transformation more than offset lower revenue outside the UK and weak handset sales.’ Openreach reported its highest ever full fibre build, BT said passing more than 1 million premises for the fourth consecutive quarter. The FTTP footprint reached 17 million and is on track to hit 25 million by December 2026. BT highlighted record customer demand for Openreach FTTP with net adds of 472,000 in the quarter. But Openreach total broadband lines fell by 208,000, reflecting ‘moderately’ higher competitor losses and a ‘weaker overall broadband and new homes market.’ Elsewhere, Kirkby flagged a return to service growth in the Consumer business which continued to expand its full fibre and 5G customer bases. BT backed its annual guidance. It expects an adjusted Ebitda of £8.2 billion, which would be a rise on the £8.1 billion achieved in financial 2024. Copyright 2024 Alliance News Ltd. All Rights reserved.
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