BT Group records 3% revenue decline in Q1 FY22

29 Jul 2021

BT Group has reported revenue of GBP5.071 billion (USD7.04 billion) for the quarter ended 31 March 2021 (Q1 FY22), representing a 3% year-on-year decline. According to the operator an increase in turnover attributable to its consumer operations and network unit – which rose to GBP2.382 billion and GBP1.347 billion, respectively – were wiped out by declines at its ‘Corporate’ and ‘Public Sector’ divisions, while revenue in the SME sector was broadly flat.

BT Group’s adjusted EBITDA totalled GBP1.866 billion in the quarter under review, up 3% on an annualised basis, with all of the group’s units bar ‘Global’ delivering EBITDA growth. Reported profit before tax stood at GBP536 million, down 4% despite the higher adjusted EBITDA, with BT saying the decline was ‘primarily due to the prior year gain on disposal of [its] domestic Spanish operations’. Meanwhile, reported net profit after tax tumbled to just GBP2 million, down from GBP446 million in the corresponding period a year earlier, due to ‘a one-off tax charge in the quarter to reflect the remeasurement of deferred tax balances following the enactment of the new UK corporation tax rate of 25% from April 2023’.

BT Group’s capital expenditure totalled GBP1.507 billion in Q1 FY22, up 63% y-o-y, primarily due to investment in spectrum; CAPEX excluding spectrum payments were up 9% at GBP1.011 billion, with the increase attributed in the main to fibre-to-the-premises (FTTP) provisioning activities and investment in the company’s mobile network.

In terms of operational highlights, the company confirmed that its FTTP network had expanded to cover a total of 5.165 million premises by 30 June 2021, up from 2.979 million a year earlier. In tandem to coverage expansion, it also highlighted the increase in customers now being served over the full fibre network, up to 1.086 million FTTP accesses as of mid-2021, almost double the 554,000 it had a year earlier. In the mobile sector, meanwhile, BT confirmed that its ‘5G ready’ customer base – which it described as ‘the number of EE customers receiving or capable of receiving 5G network connection from a 5G-enabled SIM’ – had surged to 4.088 million as of 30 June 2021, up from 374,000 at mid-2020.

Commenting on the company’s performance, Philip Jansen, BT Group chief executive, said: ‘Our operational performance remained strong and our EBITDA grew during the first three months of the year, reflecting improved trading across most of our business and the positive benefits of our plans to modernise BT. Our results were overall in line with our expectations during the quarter, with good performance in the UK offsetting challenging conditions in Global’s markets.’

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