BT records higher revenue as broadband subscriber base continues to rise

3 Feb 2014

British fixed line incumbent BT has published its financial results for the three months ended 31 December 2013, with the telco recording a 2% year-on-year increase in revenues. With adjusted turnover rising to GBP4.599 billion (USD7.44 billion) in the last three months of the year, BT noted that underlying revenue excluding transit had risen by 2.4% in the period, compared with a decline of 3.2% in same quarter of 2012, with ‘the benefits from [its] strategic investments offsetting regulatory pressures’. Adjusted EBITDA for the last three months of 2013 stood at GBP1.537 billion, flat against the corresponding period last year, as the company’s cost transformation programme helped to offset the investment in its ‘BT Sport’ service. With adjusted operating profit rising by 4% year-on-year to GBP867 million in 3Q FY2013-14, BT recorded a profit before tax of GBP722 million, up 8% against the GBP666 million it saw a year earlier.

In operational terms, at the end of December 2013 BT’s broadband subscriber base stood at 7.111 million, with the telco having added 150,000 retail broadband customers in the quarter, a figure which it claimed represented 60% of all DSL and fibre broadband market net additions in the UK in the last three months of 2013. Furthermore, the operator said it had achieved its ‘best ever quarter in fibre’, and having added some 228,000 retail fibre broadband customers in the quarter under review, it said it now had around 1.9 million such subscribers on its books. Pay-TV customer numbers have also continued to climb, with 956,000 ‘BT Vision’ subscribers reported at end-December 2013, up from 770,000 a year earlier.

Commenting on the results, BT’s CEO Gavin Patterson, Chief Executive said: ‘This is an encouraging set of results, with profit before tax up 8%, earnings per share up 12% and growth in revenue … Our strategic investments are delivering. It was another record quarter for fibre take-up and there are now more than 18 million premises with access to our fibre. That number will grow further as the BDUK programme progresses.’

United Kingdom, BT Group (incl. Openreach)