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BT has reported a 12 percent rise in profit before tax to £1.1 billion for the first half of its financial year, as its Openreach broadband network continued to expand and cost savings helped offset pressure on consumer spending. Revenue rose 1 percent to £8.8 billion, while adjusted earnings before interest, tax, depreciation and amortisation rose 1 percent to £4.1 billion. Profit after tax reached £835 million, and the group reconfirmed its guidance for the full year, including normalised free cash flow of around £2.0 billion.
The standout figure came from Openreach, the division that builds and runs the UK's largest fixed broadband network. Its full fibre network now passes 24.1 million premises, with more than 10 million homes and businesses connected, a take-up rate of 41 percent. A record of more than 1.1 million customers were added to full fibre in the half year, underlining how quickly households and businesses are moving to faster broadband as older copper lines are retired.
In the consumer business, average revenue per customer fell 3 percent to £40.80, reflecting a competitive market for mobile and broadband deals. BT has been working to simplify its products and improve service while holding down costs, and it delivered £312 million of annualised savings in the first half. The group said its focus on efficiency would continue, with further savings planned as it modernises its networks and systems.
BT also completed the acquisition of TalkTalk out of administration on 5 October, a deal that protects around 2.5 million customers. The move brings TalkTalk's customers onto BT's networks and adds scale to its broadband business at a time when competition for customers is intense. The group said the acquisition would be integrated carefully, with the priority being a smooth experience for customers moving across.
Looking ahead, BT kept its guidance for the 2027 financial year unchanged, pointing to the strength of its fibre rollout and the cash it generates. The full fibre build remains the centrepiece of its strategy: the more premises it passes, and the more of them that connect, the more revenue Openreach earns from other broadband providers that use its network. With take-up still below half of the premises passed, the company sees a long runway of growth ahead as the remaining homes and businesses switch over.
Source: London Stock Exchange
