23 July 2026
If you are covering BT's latest financial results, please find below a comment from Matt Dorset, equity research analyst at Quilter Cheviot:
"BT produced a solid update this morning that was in-line to slightly positive across the board. Revenue was flat year-on-year, and 0.6% ahead of consensus, while earnings were down 1% on the year and slightly ahead of what the market expected. Indeed, BT’s earnings would have in fact been flat excluding some one-offs in last year’s comparator.
"The Consumer segment grew its customer bases again in both broadband and mobile with churn remaining stable. Positively the Business segment, which has long been a problem child for BT, is starting to stabilise with flat revenue, although earnings were still down 7%, but this was better than expected. Furthermore, BT won a couple of connectivity contracts with Scottish Water and Royal Mail so that represents some positive momentum in that sector.
"In Openreach, the fibre rollout has now started to slow as BT nears its 25m target which it remains on track for, and this slowing build will support expanding free cash flow. Penetration remains strong with a further 574k fibre net adds and a take up rate of 40%. Broadband line losses were in-line with consensus, down 192k, and the line loss guidance has been reiterated. All other full year and mid-term guidance was also reiterated, with cash flow to increase to £2bn this year and £3bn by the end of the decade as capex related to BT’s fibre roll out significantly drops off.
"Stepping back the valuation continues to remain attractive and an increasingly attractive free cash flow yield as capex peaks makes this an intriguing stock for investors to consider."
