BT Group reports a 3% year-on-year decline in total revenue for Q3 2022
UK telco BT Group reported a 3% year-on-year decline in total revenue for its fiscal third quarter of 2022 (ending 31 December 2022), falling from £5.37bn to £5.21bn. The operator’s Consumer segment saw the largest drop (6% decline to £2.4bn), followed by its Enterprise unit (3% decline to £1.25bn) and its Global division (2% decline to £857m). At Openreach, BT’s quasi-autonomous wholesale fixed access network unit, revenue rose by 4% year on year to £1.4bn. The company also published its results for the nine months to 31 December 2022, which showed a 1% decrease in revenue to £15.6bn, as “price increases and improved trading in Openreach and Consumer were offset by lower strategic equipment sales in Global, migration of a MVNO [mobile virtual network operator] customer, removal of BT Sport revenue, and legacy product declines”, the company noted. Capital expenditure (capex) was up 3% to £3.9bn because increased Openreach investment in fixed network infrastructure offset investment in spectrum during the previous year. BT CEO, Philip Jansen, commented that BT has “grown revenue and EBITDA on a pro forma, like-for-like basis, despite a challenging economic backdrop”. The group is also “going further on cutting costs to deliver £3bn in annualised savings by the end of FY25”, he noted. Jansen also claimed that BT is building full fibre with “fury”, as 9.6 million premises now have access to such networks, of which 29% are already connected. Its 5G network, run by its mobile division EE, is reaching 60% of the population in the UK. Overall, the results were better than expected, as BT’s share price jumped by 6.3% to 131.75 pence on the London Stock Exchange.
Philip Jansen, Chief Executive, commenting on the results, said
“We’ve grown revenue and EBITDA on a pro forma, like-for-like basis, despite a challenging economic backdrop, and we’re transforming BT Group for the benefit of our customers. We continue to accelerate our investments in the UK’s leading next generation networks; we’re combining our Enterprise and Global operations to create BT Business, a single, strengthened B2B unit; and we’re going further on cutting costs to deliver £3 billion in annualised savings by the end of FY25.
“On full fibre, we’re building – and now connecting – like fury: 9.6 million premises reached to date, with 29% already connected, and our 5G mobile network now reaches 60% of the UK population.
“In December we awarded a cost-of-living pay rise to 85% of our UK colleagues, reaching an agreement with our union partners that we will all lean into our ongoing transformation plans. Despite extraordinary energy costs and other inflationary headwinds, we are reaffirming our outlook for the year.”
For complete results, https://newsroom.bt.com/trading-update-for-the-nine-months-to-31-december-2022/
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