01 February 2024
If you are covering BT’s latest results, please see the following comment from Matthew Dorset, equity research analyst at Quilter Cheviot:
"BT had a strong third quarter, with revenues increasing 3% compared to the same period last year, slightly surpassing market expectations. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a 1% rise, aligning with forecasts. The results mark the first day in the job for new CEO Allison Kirkby who emphasised the company's dedication to its core mission and strategic goals, which largely suggests continuity.
"BT warned again that it expected a further loss of broadband customers, however its fibre optic network expansion is progressing rapidly, reaching a milestone of 950,000 new homes this quarter. This brings the total number of homes with access to BT's fibre network to 13 million.
"A key challenge for BT this quarter was the higher than expected loss of traditional phone lines at Openreach, which was attributed to a sluggish broadband market. Despite some improvement from the previous quarter, the company now anticipates that these line losses will surpass their initial yearly forecast of a 400,000 line reduction.
"Among BT's divisions, Openreach stood out with a 7% increase in revenue and an impressive 11% growth in EBITDA. This success was driven by higher average revenue per user and the shift to fibre optic services. The Consumer division also performed well, benefiting from growth in average revenue per user. However, the Business division's performance was less robust, mainly due to declining traditional services."
