Introduction
BT Group (LON:BT.A) has reported its financial and operational performance for the quarter and nine months ending 31 December 2024, showing continued progress in fibre rollout, cost transformation, and service improvements. The company remains on track to meet its full-year financial outlook and long-term cash flow targets, despite weaker international revenues and declining handset sales.
Key Highlights
- Fibre Expansion: Openreach achieved another record quarter, passing over 1 million premises for the fourth consecutive quarter, bringing the FTTP footprint to 17 million. The company remains on track to reach 25 million by December 2026.
- Growing Customer Demand: FTTP connections increased by 472,000, bringing total connections to 6 million with a 35%+ take-up rate.
- Revenue Performance: Consumer service revenue returned to growth (+0.4% YoY), but was offset by a 12% decline in handset revenue.
- Cost Efficiencies & EBITDA Growth:
- Cost transformation efforts, including energy savings (-3%) and workforce reductions (-3% YoY to 117,000 employees), helped offset revenue declines.
- EBITDA increased 4% YoY to £2.1 billion, driven by operational efficiencies and cost savings.
- 5G Expansion: EE launched standalone 5G in 16 more locations, covering 30+ UK towns and cities. EE also won the umlaut connect Mobile Network Test for the 10th consecutive year.
- BT Business Performance: Core UK business remained stable, with a £1.3bn contract secured with the Home Office for the Emergency Services Network over seven years.
- Customer Satisfaction Improvement: BT Group’s Net Promoter Score (NPS) improved by 4 points in Q3, reflecting enhancements in service quality.
Financial Performance
Revenue & Profitability
- Q3 Adjusted Revenue: £5.2bn (-3% YoY), impacted by weak handset sales and challenging non-UK trading conditions.
- Q3 Adjusted EBITDA: £2.1bn (+4% YoY), supported by cost reductions and efficiency gains.
- Profit Before Tax: £427m (+1% YoY), with EBITDA growth offset by higher depreciation and net finance costs.
Segment Performance
| Business Unit | Q3 FY25 Revenue | YoY Change | Q3 FY25 EBITDA | YoY Change |
|---|---|---|---|---|
| Consumer | £2.5bn | -2% | £655m | -1% |
| Business | £2.0bn | -2% | £409m | +1% |
| Openreach | £1.5bn | +1% | £1.03bn | +6% |
Strategic Developments
- UK Market Focus: BT Group continues to streamline operations, including the sale of its Irish data centre business.
- Leadership Updates: Jon James will take over as CEO of BT Business in March 2025, allowing Bas Burger to focus on international business restructuring.
Outlook & Future Plans
BT Group remains on track to meet its FY25 financial targets and is progressing towards its cash flow inflection of ~£2bn by 2027 and ~£3bn by 2030. The strong momentum in fibre take-up, 5G expansion, and cost efficiency improvements position the company well for long-term growth.
Upcoming Results Announcement: BT Group will release its Q4 and full-year FY25 results on 22 May 2025.
