BT Group has reported an FTTP build rate of more than 1 million premises passed in Q3 2024 for the fourth consecutive quarter.
According to a trading update for the quarter and the nine months ended 31 December 2024, the company’s FTTP footprint reached 17 million premises, more than half of the UK.
It’s also on track to pass 4.2 million in FY25 and reach 25 million by December 2026.
Separately, BT has appointed Jon James as CEO of BT Business and a member of its executive committee. He joins from Danish telecoms provider Nuuday, where he has been CEO since 2021, and will start his new role on 3 March 2025.
With the new addition, Bas Burger, CEO of Business, will focus on the optimisation of BT’s international operations and explore options for the unit.
BT said in its trading update that it added a net of 472,000 customers in the quarter, 6 million premises connected and a take-up rate of more than 35 per cent.
However, Openreach broadband lines fell by 208,000 due to continued moderately higher competitor losses with a weaker overall broadband and new homes market.
Despite this, Openreach broadband average revenue per user in Q3 grew 6 per cent year-on-year to £16.1 million, ahead of the consumer price index price increases, driven by a greater FTTP take-up and speed mix.
BT’s retail FTTP base grew by 33 per cent year-on-year to 3.2 million, with consumers accounting for 3 million and businesses 200,000.
Business revenues were also stable in its core UK channels, with a £1.3 billion contract signed with the Home Office to continue providing mobile services for the Emergency Services Network over the next seven years.
The company said that its cost transformation remains on track as it continues to create a simpler BT Group, delivering efficiencies across all units. Energy usage in its networks was down 3 per cent in the year-to-date and total labour resource declined 3 per cent year-on-year to 117,000.
BT’s net promoter score was up 4 per cent at 29.6 in Q3, reflecting ongoing improvements in customer experience
However, the company’s adjusted revenue for the quarter was down 3 per cent year-on-year at £5.2 billion, mainly due to continued challenging non-UK trading conditions in its global and portfolio channels, and weaker handset trading in its consumer segment, offsetting the impact of FTTP growth in Openreach and price increases. Its reported revenue also declined 3 per cent at £5.2 billion.
BT’s Q3 adjusted EBITDA was up 4 per cent at £2.1 billion, driven by strong cost transformation and one-off other operating income in the low tens of millions, which more than offset adverse revenue.
Its Q3 reported profit before tax also rose 1 per cent to £427 million, primarily due to EBITDA growth, offset partially by increased net finance costs and increased depreciation and amortisation.
Allison Kirkby, chief executive, BT Group, said, “Our ongoing modernisation continues at pace, delivering a further step-up in fibre build and take-up, customer satisfaction and EBITDA. Benefits from our cost transformation more than offset lower revenue outside the UK and weak handset sales.
“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.
“We continue to make progress towards becoming fully focused on the UK, with the sale of our data centre business in Ireland. I am also very pleased to welcome Jon James to BT’s executive committee as the new CEO of a UK-centric BT Business, effective early March. This appointment enables Bas Burger to dedicate his time to the optimisation of our international business segment, which is progressing to plan.
"BT’s continued delivery means we remain on track to deliver our financial outlook for this year and our cash flow inflection to circa £2 billion in 2027 and circa £3 billion by the end of the decade.”