BT Group delivered a mixed set of annual results on Thursday, with falling revenues offset by stronger profits, improved customer trends and an expanded long-term cost-saving programme.
The FTSE 100 telecoms group reported a 4% decline in underlying revenue to £19.65 billion for the year ended March, while UK service revenues slipped 1% despite inflation-linked price increases.
Pre-tax profit, however, rose 8% to £1.44 billion, supported by ongoing efficiency measures and improving operational performance.
BT said it expects revenues to decline again next year, forecasting turnover of £19 billion to £19.5 billion, while underlying earnings are projected to increase to £8.2 billion to £8.3 billion.
Investors were encouraged by better-than-expected customer retention figures at Openreach, where total customer losses came in at 825,000 — ahead of analyst expectations for losses of around 844,000.
The company also announced plans to increase its dividend by a “low to mid single-digit percentage” during the current financial year.
BT further expanded its long-term cost reduction programme, increasing its targeted savings from £3 billion by 2029 to £3.7 billion by 2030 as the group continues restructuring efforts following the completion of much of Openreach’s nationwide fibre upgrade programme.
Despite the positive operational updates, shares in BT fell around 1.5% in early trading as investors focused on the weaker revenue outlook and continued pressure across the UK telecoms sector.
