BT Group revenues down 2% in FY22

13 May 2022

BT Group CEO Philip Jansen said his company had delivered ‘a strong operational performance’ as it published its financial results for the year ended 31 March 2022. In the twelve-month period under review BT Group generated a total turnover of GBP20.9 billion (USD25.5 billion), down 2% year-on-year, with the company saying the drop reflected revenue decline in ‘Enterprise’ and ‘Global’, partly offset by growth at British infrastructure unit Openreach. Meanwhile, ‘Consumer’ revenue was reported to be flat for the fiscal year, although BT noted this sector had returned to growth in the closing quarter.

In terms of other key financial metrics, BT said that adjusted EBITDA totalled GBP7.6 billion in FY22, up 2% y-o-y, with the decline in revenues having been more than offset by lower costs from its modernisation programmes, tight cost management and lower indirect commissions. Reported profit before tax totalled GBP2.0 billion in FY22, up 9% against the previous financial year, due to increased EBITDA offsetting higher finance expense. Reported profit after tax was GBP1.3 billion, down 13% y-o-y, though BT claimed this decline was ‘due to [its] remeasurement of [its] deferred tax balance’. Capital expenditure (CAPEX) in FY22 totalled GBP5.3 billion, meanwhile, up 25% against FY21, while CAPEX excluding spectrum was up 14% at GBP4.8 billion, primarily due to continued higher spend on the company’s fibre infrastructure and mobile networks.

With regards to that investment in its infrastructure, BT reported that its fibre-to-the-premises (FTTP) network footprint now encompasses a total of 7.2 million premises, a figure it said means it is now almost 30% of the way to reaching its 25 million premises build target. Rural rollout was also said to be progressing well, with BT noting that FTTP has been made available to 2.3 million premises in rural locations. Of note, BT said that it achieved a record FTTP build level of 750,000 premises passed in Q4 FY22, at an average rate of more than 58,000 premises passed per week. In terms of uptake, the company also confirmed that it had around 1.8 million subscriptions connecting via FTTP as of 31 March 2022, up 263,000 in the last quarter of its financial year, while BT said its consumer FTTP subscriptions had risen to over 1.1 million, representing quarterly growth of 112,000, its highest ever quarterly increase. The uptick was reportedly accelerated by its ‘Equinox’ FTTP pricing offer. According to BT, meanwhile, 56% of all FTTP orders in Q4 FY22 were from communications providers external to the BT Group.

BT also offered an update on the progress of mobile unit EE’s 5G rollout, confirming the latter’s recent reports that its 5G network now covers more than 50% of the population. While the company stopped short of providing a figure for active 5G subscriptions, it did report a ‘5G ready base’ of 7.23 million, up from 3.26 million at end-March 2021. (Note: BT defines ‘5G ready base’ as being ‘EE consumer customers receiving or capable of receiving 5G network connection using one or both of a 5G enabled handset and a 5G enabled SIM’.)

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