BT reports revenue drop for H1 2020

1 Nov 2019

UK-based BT Group has published its financial results for the six-month period ended 30 September 2019, recording a 1% year-on-year decline in reported revenue to GBP11.467 billion (USD14.84 billion), citing ‘the impact of regulation, declines in legacy products and strategically reducing low margin business’. Meanwhile, for the first half of BT’s current fiscal year (ending 31 March 2020) its reported pre-tax profit was GBP1.333 billion, broadly flat y-o-y, with adjusted EBITDA standing at GBP3.923 billion, representing a 3% annualised drop due to ‘lower revenues, increased spectrum fees, content costs and investment to improve competitive positioning partly offset by cost savings from transformation programmes’. Capital expenditure in H1 2020 was GBP1.882 billion, up GBP225 million y-o-y, excluding BDUK grant funding deferral, driven by increased network investment.

In terms of operational highlights, BT noted that its 5G network is currently live in ‘over 20 cities and large towns’, with 5G smartphone plans having now been made available to subscribers of both the BT and EE brands. With regards to its fixed network development, BT highlighted the recent launch of new 500Gbps and 1Gbps-capable products by network arm Openreach via fibre-to-the-premises (FTTP) technology. Further, it said that FTTP rollout was passing around 23,000 premises per week, with a total of 1.810 million now passed by the technology, more than double the 682,000 reported for end-September 2018. G.fast connectivity, meanwhile, was confirmed as being available to a total of 2.417 million premises at the end of the most recent reporting period, up from 1.708 million a year earlier.

United Kingdom, BT Group (incl. Openreach), Openreach