BT revenues fall on ‘challenges’ in enterprise sector

3 Nov 2017

BT Group has reported revenues of GBP5.95 billion (USD7.84 billion) for the three months ended 30 September 2017, with this figure representing a 1% year-on-year decline. The lower turnover was largely attributed to ‘challenges’ in its enterprise businesses, which were only partially offset by a strong performance at British mobile network operator EE. Specifically, the company noted that in ‘Global Services’ it had recorded a 10% y-o-y drop in revenue in the period under review, citing ‘ongoing challenging market conditions and also lower IP Exchange volumes and equipment sales in line with our strategy to reduce low margin business’. Meanwhile, the company said that its main measure of the group’s revenue trend, underlying revenue excluding transit, was down 1.5% on an annualised basis.

BT reported adjusted EBITDA of GBP1.81 billion, down 4% against the corresponding period last year, with the decline ‘reflecting investment in sports rights and customer experience, along with higher pension costs, business rates and decline in Global Services partly offset by cost savings’. Reported profit before tax for the second quarter was down 1% y-o-y at GBP666 million, with net cash inflow from operating activities declining by GBP464 million to GBP1.27 billion.

In operational terms, BT reported a mobile subscriber base of 29.74 million for its domestic operations, down from 30.25 million a year earlier, though blended ARPU was up at GBP20.9 per month, compared to GBP19.2 in the same quarter of 2016. Meanwhile, BT reported a total of 9.31 million retail fixed broadband subscribers, up from 9.19 million at end-September 2016, with retail fibre customers representing an increasing proportion of that figure – 5.29 million, up from 4.47 million. IPTV accesses were up almost 5% y-o-y at 1.77 million.

United Kingdom, BT Group (incl. Openreach)