If you are covering BT’s latest financial results, please find below a comment from Matthew Dorset, equity research analyst at Quilter Cheviot:
“BT has delivered fairly solid results for the first quarter as it managed to increase prices for customers by 14.4% thanks to soaring inflation. This has therefore supported both revenues and profits which were both ahead of expectation. Encouragingly, there was growth across all three business units (Consumer, Openreach, and Business) while churn remained low (1%) suggesting the price increases have landed okay with customers.
“The fibre roll out continues at a good pace with 11m homes now reached, meaning BT are 44% through their target of 25m homes passed by the end of 2026. Demand also remains strong with 383k net adds to the fibre network, and network penetration is now 32% which is impressive given the early stage of the build.
“Broadband did decline but this was in line with BT’s expectations and it is hoped the churn rate shouldn’t grow. However, while there is still pressure there from challengers and competitors, BT is a strong brand and will be able to better navigate a high interest rate environment than smaller competitors. With a new CEO incoming soon, BT is well placed for the future.”
