News
Weaker handset trading in the consumer segment detracted from the impact of both fibre-to-the-premises (FTTP) growth in Openreach and price increases
BT has released its financial results for the quarter ending 31 December 2024, reported adjusted revenue of £5.2 billion, a 3% year-on-year (YoY) drop driven by weaker international demand and a 12% decline in handset sales.
Despite this, adjusted EBITDA rose 4% to £2.1 billion, helped by tight cost control and increased operational efficiencies.
Over the first nine months of 2024, BT’s revenue stood at £15.3 billion, down 3% YoY, while EBITDA increased 2% to £6.2 billion
The company’s fixed network division Openreach remains a key driver of growth. There were 1 million new premises passed with FTTP in Q3, bringing its total FTTP footprint to 17 million, more than half of UK premises. There were 472,000 new FTTP connections, with a growing take-up rate of over 35%.
In the Consumer segment, service revenue returned to growth, up 0.4% YoY, reversing a 1.3% decline in the first half of the year. However, this was overshadowed by a 12% drop in handset sales.
The broadband customer base declined slightly by 40,000, while 5G expansion continued, with EE rolling out 5G Standalone (5G SA) in over 30 UK cities.
BT’s Business division remained stable in the UK, bolstered by a £1.3 billion contract with the Home Office to provide mobile services for the Emergency Services Network.
The company’s cost-cutting programme remains on track, reducing its workforce by 3% to 117,000 employees.
BT is doubling down on its UK-focused strategy, including the sale of its Irish data centre business and key leadership changes, with Jon James set to take over as CEO of BT Business in March 2025.
The company is also set to welcome Jon James to BT’s Executive Committee as the new CEO of a UK-centric BT Business, effective from March. The appointment will see Bas Burger, current head of BT Business, shift to focus on the international business segment.
“Openreach again performed strongly with the highest ever full fibre build, passing more than 1 million premises for the fourth consecutive quarter, and connecting a new record of nearly half a million customers. Consumer returned to service revenue growth and continued to expand its full fibre and 5G customer bases. In Business, our core UK channels were stable. Cost transformation remains firmly on track, with excellent progress on both energy costs and productivity in the quarter,” said BT CEO Allison Kirkby.
“We continue to make progress towards becoming fully focused on the UK, with the sale of our data centre business in Ireland,” she continued.
BT will announce its Q4 and full- financial year 2024-2025 results on in May.
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