BT has reported its half year financial results to September 30 2022, with a mixed bag of results.
Its fibre-to-the-premises (FTTP) build passed 8.8m premises including 2.8m in rural areas, with an additional 6m premises now underway.
Revenue increased by just one per cent to £10.4bn due to growth in Consumer and Openreach partly offset by legacy declines in Enterprise customers, lower equipment sales in Global and the impact of BT Sport disposal.
However, Openreach broadband base was down 89,000 in Q2 2022 due to reduced broadband market growth and impact from industrial action.
BT is also reducing its costs as it has hiked its cost savings goal from £2.5bn to £3bn by the end of 2025 in response to inflation and to fund its network investments.
Philip Jansen, Chief Executive BT said: “BT Group remains on the front foot in these turbulent times. Our strategy is working, we’re executing against our plan and we’re confident that we’ll deliver our long-term ambition while underpinning economic growth in the UK.
“Our financial performance is on track; we grew revenue and EBITDA in the first six months of the year and we remain laser focused on modernising and simplifying BT Group.
“Given the current high inflationary environment, including significantly increased energy prices, we need to take additional action on our costs to maintain the cash flow needed to support our network investments. As a result, we are increasing our cost savings target from £2.5bn to £3.0bn by the end of FY25.”
Alex Brodie, telecoms partner at law firm Gowling WLG added: “BT has faced a challenging first half to the year with growing competition, rising interest rates, ongoing disputes with employees over pay, and a fine for its accountant over audit failings.
“The telecoms provider will likely see further challenges, with the cost-of-living crisis potentially forcing some customers to cut back on non-essential purchases and make savings. However, with changes in the way businesses operate following the pandemic, the company has launched a new Charter for its UK business and public sector customers to help boost their growth as the economy shifts from analogue to digital.
“The joint venture confirmed for BT Sport also demonstrates the business’ aim to limit growing costs were possible, and CEO Philip Jansen will likely want to continue on this path and maximise earnings to mitigate any potential concerns from shareholders.”