BT Q1 results in line with forecasts

BT Q1 results in line with forecasts

BT has reported its first-quarter results to June 30 with its chief executive Gavin Patterson noting the performance was a good start to the year. He said he was excited by the launch of BT One Phone for business, the new mobile offering launched earlier this month. One Phone allows companies to combine work and personal calls on one mobile device; it will be followed by a consumer mobile offering with more details coming later in this financial year.

Underlying revenue (excluding transit) rose by 0.5% to £4,354 million. This figure was driven by the take-up of fibre broadband and BT Consumer where revenue was up 10% reflecting the benefit of BT Sport.

On the subject of fibre broadband rollout, the telecommunications firm announced it achieved 341,000 net fibre connections, up 29% and bringing the number of homes and businesses connected to more than 3 million. BT's physical line base grew by 12,000 and has increased by 82,000 over the past twelve months. Meanwhile, overall DSL and fibre broadband market net additions were 163,000, falling 14% on last year's figures.

Underlying operating costs (excluding transit and BT Sport) was down 3%. EBITDA was flat and earnings per share jumped by 10%.

Commenting on the results, Patterson said: 'We have made a good start to the year. We have delivered growth in underlying revenue excluding transit and in profit before tax, and free cash flow was strong.'

The chief executive pointed out that the company's fibre broadband network now covers more than twenty million premises. 'We are passing over 70,000 additional premises each week and demand is strong with more than three million already signed up.'  

Patterson said he was excited by the launch of BT One Phone for the business market as well as other mobility plans. He added that more would be said on these strategies later in the financial year. 

BT recently announced 2,500 new jobs to support its investments in fibre and customer service. It will roll out regional centres of excellence within the next six months to provide further support customers.

'We are building on solid foundations and I am confident we will deliver on our strategy,' he added.

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