BT continues to deliver: record fibre build, connections and customer satisfaction

Results for the full year to 31 March 2026

Allison Kirkby, Chief Executive, commenting on the results, said:

“FY26 was another year of strong delivery against BT’s strategy. We are building the UK’s digital backbone even faster and further, connecting the country like no one else and accelerating our transformation - and we know there is much more we can do, as we create a better BT for all of us.

 “Our record-breaking Openreach full fibre build hit its upgraded target and today reaches more than two thirds of UK homes and businesses, keeping us well on track for our 25 million milestone by the end of December. We extended our mobile leadership further, with EE winning best mobile network in three separate awards, bringing 5G+ to 73% of the population.

 “Customer satisfaction reached a new high, with increased demand for our next-generation products and networks. Openreach achieved record full fibre connections and reduced line losses. And by using all our brands – BT, EE and Plusnet – our Consumer division returned to customer growth across broadband, mobile and TV. Our Business division has secured significant customer wins as its transformation progresses - and we’ve completed five targeted non-core disposals as we reshape BT International.

“We have delivered on our financial guidance and we are transforming ahead of plan, offsetting headwinds while successfully competing. Today we’re announcing an increased full year dividend of 8.32 pence per share and an updated dividend policy, and we are reiterating our guidance of sustained growth, including cash flow inflection to c. £2.0bn in FY27 and to c. £3.0bn by the end of the decade.”

Consistently delivering against our strategic priorities in competitive markets

• Record FTTP build of 4.8m premises passed in the year, achieving the accelerated target set last year, the fastest build in Europe; FTTP footprint at 23m premises, more than two thirds of all UK premises, of which 6.3m in rural locations; on track to reach our target of 25m by December 2026

• Record customer demand for Openreach FTTP with 2.2m net adds in the year; total premises connected total 8.8m, bringing our market-leading take-up rate amongst all major fibre providers to over 38%; Openreach broadband ARPU in the year grew by 4% to £16.7, driven by higher FTTP take-up, speed mix and price increases

• Openreach broadband line losses were 203k in Q4, giving full year losses of 825k, slightly better than our c. 850k guidance, supported by our expanded and accelerated build; we expect losses of c. 800k in FY27                                            

• EE remains the UK’s best mobile network, evidenced by independent industry assessments, including Umlaut, Opensignal and RootMetrics; 5G+ population coverage increased to 73% from 43% last year

• Retail FTTP base grew by 31% year-on-year to 4.5m, of which Consumer 4.2m and Business 0.3m; 5G base reached 14.5m, up 10% year-on-year; BT brand reintroduced with new products across Consumer and Business segments during May 2026

• Consumer customer base growth up 26k in broadband, 104k in postpaid mobile and 72k in TV, with stable to falling churn

• Consumer ARPU down 1% to £41.7 in broadband and down 1% to £19.3 in postpaid mobile year-on-year in a competitive market; Consumer fixed and mobile convergence¹ increased to 26.6% from 24.6% last year

• Business achieved significant new connectivity & security wins including BAE Systems, NIE Networks and easyJet, and is partnering with Nscale to deliver sovereign AI data centres in the UK

• International refocused following completion of five planned divestments with ongoing rationalisation of footprint, products, overseas network and IT estate

• Transformation delivering ahead of plan, realising cost savings while improving customer journeys; £580m gross annualised cost savings achieved during FY26 at a cost to achieve of £336m, taking total savings over two years to £1.5bn at costs of £0.8bn; we realised year-on-year reductions in energy usage in our networks of 6%, in total labour resource of 7% to 108k and in Openreach repair volumes of 18%

• Overall transformation plan target raised to £3.7bn from £3.0bn and extending the programme by one year to FY30, at a cost to achieve of £1.4bn from £1.0bn

• Record BT Group NPS of 33.4, up 4.1pts year-on-year; customer satisfaction up across all brands

Solid financial performance against outlook, dividend raised; reiterating NFCF¹ to increase to £2bn in FY27 and £3bn by FY30

• Reported revenue £19.7bn down 3% and adjusted¹ revenue £19.6bn, down 4%, driven by lower International revenue including divestments, declines in handset trading and declines in adjusted UK service revenue

• Adjusted UK service revenue¹ £15.4bn, down 1%, mainly driven by lower voice volumes in Business and Consumer, offset by CPI-linked price increases and an improved broadband FTTP mix in Openreach

• Adjusted¹ EBITDA £8.2bn, flat year-on-year, with lower revenue offset by strong cost transformation and cost control; excluding divestments, like-for-like adjusted EBITDA was up 1%

• Reported profit before tax £1.4bn, up 8%, with the increase primarily driven by lower specific items, lower depreciation and amortisation, offset by a higher finance expense

• Capital expenditure¹ £5.1bn, up 6%, reflecting higher FTTP provisioning and build activity

• Net cash inflow from operating activities £7.0bn, up 1%; normalised free cash flow¹ £1.5bn, down 6% due to higher cash capital expenditure, interest costs, the absence of a prior year tax refund and working capital movements, partly offset by working capital programmes

• Net debt £20.0bn (31 March 2025: £19.8bn), broadly stable year‑on‑year

• Gross IAS 19 pension deficit of £4.2bn, an increase from £4.1bn at 31 March 2025, reflecting updated views on mortality and inflation, and lower asset returns than expected, partly offset by scheduled contributions

• Final dividend of 5.87 pence per share (pps) up 2% from 5.76pps, bringing the full year dividend to 8.32pps

• Updated dividend policy to grow the dividend by low to mid single digit percent per annum in FY27 and onwards until metrics consistent with a BBB+ credit rating are reached; thereafter residual cash flow will be available for enhanced distributions to shareholders

• FY27 outlook: Adjusted¹ revenue £19.0-19.5bn, adjusted UK service revenue¹ of £15.1-£15.4bn and adjusted¹ EBITDA growth within the range of £8.2-8.3bn; capital expenditure¹ excluding spectrum c. £4.3bn; normalised free cash flow¹ c. £2.0bn

• Mid-term guidance: Sustained growth in adjusted¹ revenue and adjusted UK service revenue¹, sustained growth in adjusted¹ EBITDA ahead of UK service revenue, enhanced by cost transformation; capital expenditure¹ excluding spectrum reducing by more than £1bn from the FY26 level; normalised free cash flow¹ of c. £3.0bn by the end of the decade

_{¹  See Glossary
²  Includes spectrum investment of £13m}

Customer-facing unit updates

Performance against FY26 outlook

Prior period comparatives

Throughout this release, comparative financial information for the full year to 31 March 2025 ('FY25') has been re-presented to reflect the formation of the new International CFU and re-presentations of segmental revenue to reflect the nature of services and trading relationships between CFUs. Note 16 on page 29 and Additional Information on page 33 presents a bridge between financial information for the full year to 31 March 2025 as published on 22 May 2025, and the comparatives presented in this release. For further information see bt.com/about for a separate publication covering the formation of International.

_{¹  See Glossary
² FY25 comparative information for the Business CFU has been re-presented to reflect the formation of the new International CFU and re-presentations of segmental revenue to reflect the nature of services and trading relationships between CFUs. Note 16 on page 29 presents a bridge between financial information for the full year to 31 March 2025 as published on 22 May 2025, and the comparatives presented in this release.} 

Glossary

Our commentary includes discussion of the trading results on an adjusted basis. This is consistent with the way that financial performance is measured by management and reported to the Board and the Executive Committee and assists in providing a meaningful analysis of trading results of the group. Reported revenue and reported profit before tax are prepared in accordance with IFRS and are the equivalent unadjusted or statutory measures. Reconciliations between adjusted measures and the most directly comparable IFRS measures are provided in Additional Information section (pages 33 to 35).

We assess the performance of the group using a variety of alternative performance measures. Reconciliations from the most directly comparable IFRS measures are in Additional Information on pages 33 to 35.

Forward-looking statements – caution advised

Certain information included in this preliminary announcement is forward-looking in nature and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

Forward-looking statements relate to all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company’s plans and objectives for future operations. These statements can be identified by the use of forward-looking terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘plans’, ‘projects’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology.

Forward-looking statements in this preliminary announcement are not guarantees of future performance. All forward-looking statements in this preliminary announcement are based upon information known to the Company on the date of this preliminary announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking statements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.

Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this preliminary announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

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