BT maintains outlook despite Q1 revenue decline

BT has reiterated full-year targets after a "solid start" to the year, with strong growth in fibre and customer numbers, though revenues were held back by a weaker performance in the business division.

Adjusted revenues in the first quarter ended 30 June were down 2% at £5.1bn due to legacy managed contract declines, reduced low margin sales activity and contraction in the portfolio unit within business.

The continued shift to mobile SIM only and a lower CPI benefit in a competitive market in the consumer division also weighed on the top line.

Adjusted EBITDA rose by just 1% to £2.1bn, while reported pre-tax profit was down 3% at £520m.

BT hailed record FTTP (fibre to the premises) build of more than one million premises passed in the quarter at an average build rate of 78,000 a week, giving it an FTTP footprint of 15m with 4.2m rural premises and a further 6m where initial build is underway. The FTTP customer base has now surpassed 5m.

"Openreach continues to build at pace and with even more efficiency, passing the milestones of 5 million connections and - just yesterday - 15 million premises built," said chief executive Alison Kirkby.

However, in the consumer division, the broadband base was down 0.3% (-28,000) over the three months with postpaid mobile numbers down 0.1% (-15,000).

"In Consumer, the widespread availability of FTTP and 5G combined with our new EE propositions has contributed to an improved trend in our customer base, in what remains a very competitive market," Kirkby said.

"There is much more to do to simplify BT Group and deliver for our customers. We remain on track to deliver our financial outlook for this year."