Trading update results for the nine months to 31 December 2021
BT Group plc (BT.L) today announced its trading update for the nine months to 31 December 2021.
Philip Jansen, Chief Executive, commenting on the results, said
“BT has had a good quarter with encouraging market share performance, and we continued to make significant improvements in customer service, although revenue from our enterprise divisions was softer than we expected.
We had another record-breaking quarter on our full fibre build and a pleasing 37% increase in FTTP connections following the launch of Openreach’s wholesale pricing offer. Our 5G build is also on track and now covers over 40% of the UK population with independently verified network leadership.
Today sees two important strategic partnership announcements on how BT moves forward in the fast-evolving content and TV business. The agreement in principle with Sky will provide our customers more choice and more flexibility for the next decade. Separately, we are excited at the prospect of a new joint venture between BT Sport and Eurosport UK as we enter into exclusive discussions with Discovery.”
Strong operating momentum delivered by record customer experience and FTTP build:
- Reached agreement in principle with Sky for a new longer-term reciprocal channel supply deal to beyond 2030
- Separately, entered exclusive discussions with Discovery to create a joint venture with BT Sport and Eurosport UK
- Delivered record FTTP build of 662k at an average rate of over 50k per week in the quarter with footprint now at 6.5m, including 2m rural premises
- FTTP take up accelerated to 1.5m premises driven by Openreach's Equinox offer
- 5G ready customer base over 6.4m; 5G now covers more than 40% of the UK population
- According to RootMetrics, EE again has the UK's best 4G and 5G networks
- Highest ever NPS result for BT Group
Continued EBITDA growth with revenue challenges due to delayed Covid-19 recovery and supply chain issues1:
- Revenue £15,676m, down 2%; declines primarily in Global and Enterprise partly offset by growth in Openreach; adjusted2 revenue down 3%
- Adjusted2 EBITDA £5,708m, up 2%; driven by tight cost management, lower indirect commissions and higher revenue from Ethernet and fibre-enabled products, partly offset by declining revenue in Global and Enterprise
- Reported profit before tax £1,537m, down 3%, primarily due to higher finance expenses and depreciation and amortisation, partly offset by increased EBITDA
- Normalised free cash flow2 £878m, up 6%, primarily due to increased EBITDA, lower cash tax payments and improved working capital, offset by higher cash capital expenditure and one-off items in the prior year
- Capital expenditure up 24% to £3,752m, primarily due to investment in spectrum, FTTP and mobile network
- Group adjusted2 revenue now expected to be down around 2% for FY22 as a result of Covid-19 and supply chain issues; all other outlook metrics unchanged
1 All commentary relates to the nine months to 31 December 2021 unless otherwise stated.
2 See Glossary on page 4.
3 Net debt was £17,802m at 31 March 2021.
BT Group is the UK’s leading telecommunications and network provider and a leading provider of global communications services and solutions, serving customers in 180 countries. Its principal activities in the UK include the provision of fixed voice, mobile, broadband and TV (including Sport) and a range of products and services over converged fixed and mobile networks to consumer, business and public sector customers. For its global customers, BT provides managed services, security and network and IT infrastructure services to support their operations all over the world. BT consists of four customer-facing units: Consumer, Enterprise, Global and its wholly-owned subsidiary, Openreach, which provides access network services to over 650 communications provider customers who sell phone, broadband and Ethernet services to homes and businesses across the UK.
For the year ended 31 March 2021, BT Group’s reported revenue was £21,331m with reported profit before taxation of £1,804m.
British Telecommunications plc is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.
For more information, visit www.bt.com/about