BT Group has reported revenue of GBP 11.59 billion for the fiscal half year to 30 September, down 2 percent from GBP 11.78 billion a year earlier. Adjusted revenue fell 1 percent to GBP 11.62 billion as consumer business growth was offset by declines in the enterprise business and regulated price reductions for Openreach. Reported profit before tax was GBP 1.35 billion for the six months, with adjusted EBITDA up 2 percent to GBP 3.67 billion, driven mainly by higher volume and mix of high-end smartphones in the consumer business and restructuring-related cost savings.
BT said plans to transform the group's operating model were on track, with the restructuring programme removing around 2,000 roles in the first half, most from Global Services. The ultrafast broadband roll-out has passed around 2 million premises, with Openreach currently building FTTP to around 13,000 premises per week. Consumer fixed ARPU was up 1 percent to GBP 38.30, while the increased mix of SIM-only reduced post-paid mobile ARPU by 0.5 percent to GBP 22. Mobile churn for the six months was 1.2 percent, with fixed churn increasing to 1.6 percent after recent price increases.
Net cash inflow from operating activities was down by GBP 1.83 billion to GBP 754 million, mainly due to a GBP 2 billion contribution to the BT pension scheme. BT confirmed an interim dividend of 4.62 pence per share, 30 percent of last year's full-year dividend of 15.4 pence per share. BT is maintaining its overall outlook for the year, expecting EBITDA to be in the upper half of the GBP 7.3-7.4 billion range.
The Consumer division had adjusted revenue of GBP 5.27 billion for the six months, up 3 percent from GBP 5.12 billion a year earlier, with adjusted EBITDA up 8 percent to GBP 1.22 billion. BT Global Services saw adjusted revenue fall 7 percent to GBP 2.22 billion, while adjusted EBITDA was up 35 percent to GBP 208 million. Total order intake for BT Global Services for the six months was GBP 1.4 billion, down 18 percent, and reached GBP 3.5 billion on a 12-month rolling basis, down 8 percent year-on-year. Adjusted revenue for Openreach for the first half was down 1 percent to GBP 2.47 billion, and adjusted EBITDA fell 6 percent to GBP 1.17 billion.
The BT Plus consumer converged offering reached around 500,000 subscribers, with many taking a mobile product. Openreach has expanded the reach of fibre broadband to 27.2 million premises, and has now passed around 1.3 million premises with its Gfast network and over 68,000 with its FTTH network. Openreach completed around 600,000 fibre broadband net connections in the second quarter and more than one million for the six months, and now has over 10.5 million customers connected to fibre, up from 8.4 million a year earlier.
