This article first appeared on GuruFocus .
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Revenue:Adjusted revenue for the year was 19.6 billion, down 4%.
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EBITDA:Adjusted EBITDA for the year was 8.23 billion, up just under 1% excluding divestments.
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CapEx:5.1 billion for the year, slightly above guidance due to strong connection activity.
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Free Cash Flow:Normalized free cash flow was 1.5 billion, meeting guidance.
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Dividend:Total dividend increased to 8.32p per share, a 2% growth.
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Openreach Revenue:Grew 1% driven by CPI-linked price increases and improved FTTP mix.
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Consumer Revenue:Declined 2% primarily due to lower handset volumes.
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Business Revenue:Down 2% due to softer equipment sales and voice declines.
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International Revenue:Affected by legacy and managed contract declines and divestments.
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Cost Savings:Achieved 580 million in annualized cost savings, totaling 1.5 billion over two years.
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Workforce Reduction:Overall workforce reduced by 7%, direct labor fell 10%.
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Energy Use:Reduced by 6% following network optimizations.
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Outlook:Total revenue expected to be around 19 to 19.5 billion for fiscal year '27.
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Release Date: May 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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BT Group PLC ( BTGOF ) achieved a record fibre build, passing 23 million premises, with a target of 25 million by the end of the calendar year.
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The company reported a 2% increase in total dividend to 8.32p per share, reflecting confidence in future performance.
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BT Group PLC ( BTGOF ) saw improvements in customer satisfaction across its brands, contributing to growth in its retail customer base.
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The company successfully exited five non-core businesses, sharpening its focus on the UK market.
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BT Group PLC ( BTGOF ) achieved 580 million in annualized cost savings, bringing total savings to 1.5 billion over two years.
Negative Points
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Revenue declined by 4% to 19.6 billion, primarily due to lower equipment sales and international revenues.
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Consumer EBITDA declined by 2%, driven by higher input costs and lower handset volumes.
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The business division faced a 2% revenue decline due to softer equipment sales and voice declines.
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International revenues remained under pressure from legacy and managed contract declines.
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The company faces headwinds from the PSTN shutdown, impacting both consumer and business revenue.
Q & A Highlights
Q: Why wouldn't BT Group consider doubling its dividend given the sustainable cash flow profile? A: Allison Kirkby, CEO, explained that while BT Group is generating significant cash flow, the company is focused on maintaining a strong balance sheet and supporting its pension commitments. The dividend policy will be reviewed once the company achieves a BBB+ credit rating, with potential for enhanced distributions thereafter.
Q: Can you comment on the GBP476 million working capital benefit in FY '26 and its impact on future cash flow? A: Simon Lowth, CFO, clarified that the working capital benefit included a GBP100 million forward copper sale and handset securitization to fund the move to three-year contracts. These measures were part of managing the working capital position, and similar strategies will be used in FY27 to offset the impact of the Telecom Access Review.
Q: What are BT Group's plans regarding Openreach offers and potential new geographic or specific offers? A: Allison Kirkby, CEO, stated that BT Group is in active discussions with Ofcom about potential new offers to drive fiber migrations. While there is no defined Equinox 3, the company aims to maximize fiber uptake and is working with Ofcom to achieve this.
Q: How does BT Group view the competitive landscape in the UK market, particularly regarding deregulation? A: Allison Kirkby, CEO, noted that the UK market is highly competitive, with multiple players in many areas. BT Group is engaging with Ofcom to recognize this competition and allow BT to compete effectively with its efficient fiber network.
Q: What is BT Group's stance on acquiring Altnet assets given the financial distress in the sector? A: Allison Kirkby, CEO, mentioned that BT Group would consider acquiring Altnet assets only if it makes financial sense compared to building its own network. The company is focused on expanding its fiber network efficiently and cost-effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
