BT Group reported revenue of GBP 17.55 billion for the nine months to 31 December 2018, down 1 percent, with underlying revenue down 0.9 percent as growth in the consumer division was offset by declines in the enterprise businesses and regulated price reductions in Openreach.
Adjusted EBITDA for the nine months was broadly flat at GBP 5.55 billion, driven mainly by growth in the consumer unit and cost savings from restructuring, offset by lower Openreach and Enterprise revenues. Reported capital expenditure was up GBP 239 million to GBP 2.81 billion, mainly due to increased investment in FTTP.
Openreach passed around 1.7 million premises with Gfast and around 900,000 with FTTP, meaning more than 2.6 million ultrafast premises passed at the end of 2018. Consumer fixed ARPU for the nine months was up 5 percent to GBP 39.60, with increased mix of SIM-only reducing post-paid mobile ARPU by 0.9 percent to GBP 21.40. Fixed churn for the period was 1.4 percent, with mobile churn at 1.3 percent. Revenue generating unit (RGU) levels were 2.37 products per household.
The Consumer division reported adjusted revenue of GBP 2.78 billion and GBP 8.05 billion for the third quarter and nine months respectively, up 4 percent and 3 percent year-on-year; with adjusted EBITDA up 15 percent to GBP 643 million in Q3 and up 10 percent year-on-year to GBP 1.86 billion for the nine months.
The Enterprise division had Q3 and 9-month adjusted revenue of GBP 1.55 billion and GBP 4.73 billion, down 6 percent and down 5 percent respectively, with adjusted EBITDA down 2 percent in Q3 to GBP 501 million in Q3 and down 3 percent to GBP 1.49 billion for the nine months.
The Global Services division had reported revenue of GBP 1.20 billion for Q3, down 5 percent from GBP 1.26 billion in the year-earlier quarter, reaching GBP 3.53 billion for the nine months, down 6 percent from GBP 3.77 billion. Adjusted EBITDA for Q3 was up 4 percent to GBP 147 million, and up 20 percent for the nine months to GBP 355 million.
Openreach revenue for the quarter was GBP 1.26 billion, down 9 percent from GBP 1.38 billion a year earlier, and GBP 3.80 billion for the nine months, down 4 percent. Adjusted EBITDA was GBP 603 million for Q3, down 19 percent from GBP 747 million a year earlier, and GBP 1.83 billion for the nine months, down 11 percent from GBP 2.04 billion. Revenue decline was driven by around GBP 180 million of regulated price reductions on FTTC and Ethernet products. Fibre broadband net additions for the quarter were 680,000, with Openreach also receiving orders for over 19,000 Ethernet circuits in Q3.
