BT’s profits soared after implementing a 14% hike in prices for its broadband and mobile services, affecting millions of customers.
The company reported a pre-tax profit of £1.5 billion for the nine months leading up to December, marking a 15% increase from the previous year.
Its revenue rose by 3% to £15.8 billion.
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The growth was attributed to the price hikes and a boost in sales of its full-fibre broadband services. BT, which also owns EE mobile network, faced criticism for raising prices above inflation during the cost of living crisis. Another increase of 7.9% is expected next month.
This approach of linking price changes to inflation has been under scrutiny, especially from consumer groups who argue that customers are not adequately informed about their bill changes.
Ofcom, the industry regulator, plans to mandate companies to clearly state price increases in specific monetary amounts.
In January, BT announced a change in its pricing policy to be effective from summer. Mobile customers will experience a minimum increase of £1.50, while broadband prices will start rising from £3.
In its latest trading update, BT highlighted the acceleration of its full-fibre broadband rollout, now reaching 73,000 premises weekly, with over 13 million homes connected so far.
Nevertheless, the company cautioned about the challenging broadband market due to competition from other networks like Cityfibre.
During the first nine months of the year, BT’s Openreach division experienced a loss of 369,000 customers, marking a 2% decrease. The company anticipates that the total customer losses will exceed 400,000 for the entire financial year.
BT’s struggling business division saw no growth in revenues during this period, which the group attributed to increased expenses and a reduction in traditional services.
