22 May 2025
If you are covering BT’s latest results, please see the following comment from Matt Dorset, equity research analyst at Quilter Cheviot:
BT reported a mixed set of results this morning. Sales fell 2% over the year, largely due to weaker international demand and fewer handset sales. But thanks to tight cost control, profits edged up slightly, and cash flow came in better than expected. That allowed BT to increase its dividend by 2%, a sign the business is in stable financial shape.
Chief executive Allison Kirkby has now been in the top job for over a year. Since taking the reins, she’s moved quickly to streamline the business. BT has sold off non-core operations, such as ventures in Ireland and Italy, and pulled back from more experimental projects like rolling out EV charging points. She’s also made a series of leadership changes to refocus the company’s priorities.
On the operational side, BT continues to make solid progress rolling out full-fibre broadband. Another 4.3 million homes were connected this year, taking its fibre footprint to 18 million across the UK. Over 500,000 customers signed up in the final quarter alone. BT is also earning more per customer as it encourages upgrades to faster, more reliable connections.
However, its older broadband lines continue to lose customers. Openreach saw another 243,000 line losses in the final quarter, partly due to competition and broader market decline. BT expects this trend to continue for now, and in response, is accelerating its fibre rollout with plans to connect 5 million more homes next year.
That ramp-up will push capital spending £100 million higher, which means BT’s free cash flow will dip slightly below previous expectations next year. The company is also forecasting a 1.5% drop in revenue and just 0.5% growth in profits.
Despite that, BT is sticking to its long-term targets—£2 billion in free cash flow by 2027 and £3 billion by the end of the decade. Shares are up around 30% over the past year, showing investors are buying into the turnaround story.
