EE acquisition helps boost revenue at BT

Telecommunications provider BT Group announced its results for the second quarter and half year to 30 September on Thursday, with reported revenue up 35% for the quarter, and growth in underlying revenue - excluding transit adjusted for the acquisition of EE - up 1.1%.

The FTSE 100 firm reported earnings per share down 10%, though adjusted earnings per share were up 4%.

Underlying EBITDA adjusted for the acquisition of EE was up 0.9%, and the board declared an interim dividend of 4.85p, up 10%.

It posted a noncash specific item charge of £145m following its initial investigation into inappropriate management behaviour in BT Italia

Net cash inflow from operating activities was £1,734m, up £489m with normalised free cash flow of £894m, up £325m.

BT’s board said that reflected the timing of receipts and payments within the year, with net debt standing at £9,573m.

“This is a positive set of results, both operationally and financially, and we remain on track to achieve our full year outlook,” said chief executive Gavin Patterson.

“We've made good progress on the integration of EE and the delivery of our synergy targets.”

Patterson said BT’s consumer facing lines of business performed well, but in the enterprise space, UK public sector continued to be a challenging market.

“Across the group, we continue to drive cost reduction and productivity improvements.

“Customer experience remains a key priority, and we're stepping up our investments in the second half of the year.”

Patterson said the group would also continue to invest in its ultrafast and 4G plans in 2017 and beyond.

“Ofcom's consultation on the Digital Communications Review closed earlier this month; we've submitted our response and will continue to engage with Ofcom to reach the best outcome for the UK.”