BT Group Plc (LON:BT.A) has announced its results for the three months to 30 June 2026.
Allison Kirkby, Chief Executive, commenting on the results, said:
“BT has made a solid start to the year. We are connecting more customers to our next-generation networks, and are increasingly the choice for mission-critical solutions, as we connect and protect the country and accelerate our transformation.
“Across Openreach and Consumer we achieved record new full fibre connections and take-up, resulting in fibre contributing to more than half of our broadband revenues for the first time. By investing in all our brands, and the services they offer, we’re continuing to grow our Consumer customer base. In Business, service revenue is stabilising, with excellent sales order growth from major customers. In this final year of the legacy landline network, our service revenue, excluding voice, grew in the quarter.
“We expanded 5G+ further to now reach 77% of the UK population and our full fibre build is on track to reach 25 million premises by the end of December. Internationally, our proposed joint venture with Verizon will create a scaled global connectivity platform and allow us to focus on our transformation in the UK.
“No-one is upgrading and investing in the country’s digital backbone at the scale and pace that BT is. We remain on track to deliver our targets, including cash flow of c£2.0bn this year and c£3.0bn by the end of the decade – as we create a better BT, for all of us.”
Strategic priorities delivering to plan:
– FTTP footprint increased to 23.4m, an increase of 514k in the quarter, on track to achieve our 25m FTTP build target by December 2026
– Record customer demand for Openreach FTTP with 574k net adds in the quarter; total premises connected 9.4m, bringing our market-leading take-up rate to 40%; Openreach broadband ARPU grew by 7% to £17.7, driven by higher FTTP take-up, speed mix and price increases
– Openreach broadband lines fell by 192k; we continue to expect losses of c. 800k in the year
– EE maintained its mobile leadership, winning P3’s Test Champion Award and topping the Reliability, Coverage and Performance categories; 5G+ population coverage rose to 77%, up from 73% last quarter
– Record retail FTTP base growth, up 1.1m year-on-year to 4.8m, comprising 4.5m Consumer connections (54% of the broadband base) and 0.3m Business connections
– Continued Consumer customer growth, up 1k in broadband, 13k in postpaid mobile and 9k in TV. Both our broadband and postpaid mobile churn remained stable year-on-year at 1.1% and 1.0% respectively despite competition as our fibre-first strategy continues to deliver
– Consumer ARPU of £40.9 in broadband, down 2% year-on-year primarily due to declines in voice; £19.7 in postpaid mobile, up 2% year-on-year; Consumer fixed and mobile convergence increased to 26.8% from 26.6% last quarter and 25.5% last year; EE One Up rewards programme launched
– Business service revenue stabilising, with strong sales order growth including new connectivity contracts signed with Scottish Water and Royal Mail
– International JV with Verizon announced combining our operations to create a stronger scaled global connectivity business and marking a significant milestone in delivering BT Group’s UK-focused strategy
– Cost transformation delivered efficiencies across all units, with year-on-year reductions in network energy usage of 8%, total labour resource excluding International of 8% to 94k and in Openreach repair volumes of 21%
– BT Group NPS increased to 30.7, up 3.6pts year-on-year, rebased for the exclusion of International
On track to achieve full year guidance:
Following the announcement in June of our agreement with Verizon to create a combined global business, the International CFU is now reported as a discontinued operation. The below metrics are reported on a continuing basis.
– Revenue £4.3bn, flat year-on-year. Adjusted UK service revenue £3.8bn down 1%, as growth in broadband and Corporate and Public Sector in Business and customer base growth in Consumer were offset by declines in voice
– Adjusted EBITDA £2.0bn, down 1% year-on-year and broadly flat excluding the impact of prior year one-offs, with lower broadband and voice margins offsetting strong cost transformation
– Reported profit before tax of £505m, down 4% driven by higher finance costs offset by lower restructuring costs
– Reconfirming all FY27 and multi-year financial outlook metrics as updated in June to reflect our continuing operations
| Adjusted revenue | Adjusted UK service revenue | Adjusted EBITDA | |||||||
| First quarter to 30 June | 2026 | 2025re-presented1 | Change | 2026 | 2025re-presented1 | Change | 2026 | 2025re-presented1 | Change |
| £m | £m | % | £m | £m | % | £m | £m | % | |
| Consumer | 2,331 | 2,332 | – | 1,958 | 1,962 | – | 616 | 636 | (3) |
| Business1 | 1,293 | 1,287 | – | 1,186 | 1,183 | – | 302 | 323 | (7) |
| Openreach | 1,575 | 1,566 | 1 | 1,575 | 1,566 | 1 | 1,093 | 1,068 | 2 |
| Other | 4 | 3 | n/m | 4 | 2 | n/m | 2 | 2 | n/m |
| Intra-group items | (881) | (851) | 4 | (880) | (850) | 4 | – | – | – |
| Total continuing operations | 4,322 | 4,337 | – | 3,843 | 3,863 | (1) | 2,013 | 2,029 | (1) |
1 Refer to page 2 for an explanation of how the 2025 comparatives have been re-presented
n/m: comparison not meaningful
Group financial guidance as updated in June to reflect our continuing operations
| Previous FY27 Outlook incl. International | New FY27 Outlook for continuing operations (excl. International) | Mid-term guidance (unchanged) | |
| Adjusted group revenue | £19.0-£19.5bn | £17.1-£17.6bn | Sustained growth |
| Adjusted UK service revenue | £15.1-£15.4bn | £15.1-£15.4bn | Sustained growth |
| Adjusted EBITDA | Growth, £8.2-£8.3bn | Growth ex International, £8.1-£8.2bn | Sustained growth ahead of UK service revenue, enhanced by cost transformation |
| Capital expenditure excluding spectrum | c. £4.3bn | £4.2bn- £4.3bn | Reduces by >£1bn from FY26 level |
| Normalised free cash flow | c. £2.0bn | c. £2.0bn | c. £3.0bn by end of decade |
| Dividend | Low to mid-single digit growth | Low to mid-single digit growth | Low to mid-single digit growth until metrics consistent with BBB+ are reached; thereafter residual cash flow will be available for enhanced distributions |
Discontinued operations
Following the announcement in June of our agreement with Verizon to create a combined global business, the International CFU is now reported as a discontinued operation. International adjusted revenue was £451m (Q1 FY26: £542m; of which the five businesses divested from International during FY26 generated £78m) and adjusted EBITDA was £29m (Q1 FY26: £21m).
Re-presentation of FY26 comparatives
FY26 comparative information has been re-presented to reflect that the International division is now reported as a discontinued operation; all financial metrics are presented on a continuing operations basis. Q1 FY26 comparative information for Business has also been re-presented to reflect this change (at Q1 FY26 International was reported as part of the Business CFU), together with revisions to segmental revenue presentation to better reflect the nature of services and trading relationships between CFUs.
Reconciliation to non-GAAP measures
Our commentary focuses on the trading results on an adjusted basis. This is consistent with the way that financial performance is measured by management and reported to the Board and the Executive Committee and assists in providing a meaningful analysis of the trading results of the group. In accordance with IFRS, we updated our financial reporting to recognise that the International CFU is a discontinued operation. Accordingly, all metrics below are presented on a continuing basis. Reported revenue and reported profit before tax are the equivalent unadjusted or statutory measures.
| Continuing operations | 2026 | 2025re-presented1 |
| First quarter to 30 June | £m | £m |
| Profit before tax2 | 505 | 526 |
| Net finance expense | 318 | 294 |
| Depreciation and amortisation | 1,157 | 1,139 |
| Specific operating costs and revenue | 33 | 73 |
| Share of post-tax profit of associates and joint ventures | – | (3) |
| Adjusted EBITDA | 2,013 | 2,029 |
| Continuing operations | 2026 | 2025re-presented1 |
| First quarter to 30 June | £m | £m |
| Reported revenue | 4,325 | 4,342 |
| Specific revenue | (3) | (5) |
| Adjusted revenue | 4,322 | 4,337 |
| Equipment revenue | (479) | (474) |
| Adjusted UK service revenue | 3,843 | 3,863 |
1 FY26 comparative information has been re-presented to reflect that the International division is now reported as a discontinued operation; all financial metrics are presented on a continuing operations basis. Q1 FY26 comparative information has also been re-presented to reflect this change, together with revisions to segmental revenue to reflect the nature of services and trading relationships between CFUs.
2 Continuing profit before tax was £505m (Q1 FY26: £526m), discontinued loss before tax was £43m (Q1 FY26: £58m), equating to a total profit before tax of £462m (Q1 FY26: £468m).
Glossary
| ARPU | Average Revenue Per User |
| FTTP | Fibre To The Premises |
| NPS | Net Promoter Score, for the continuing group |
| Adjusted revenue | Adjusted revenue is before specific items. Adjusted results are consistent with the way that financial performance is measured by management and assist in providing an additional analysis of the reporting trading results of the continuing group. |
| Adjusted UK servicerevenue | Adjusted UK service revenue comprises all UK revenue less UK equipment revenue. Some revenue from equipment is included within adjusted UK service revenue where this is sold as part of a managed services contract or where that equipment cannot be practicably separated from the underlying service. |
| Adjusted EBITDA | Earnings before interest, tax, depreciation and amortisation, before specific items, share of post tax profits/losses of associates and joint ventures and net finance expense for the continuing group. |
| Capital expenditure | Additions to property, plant and equipment and intangible assets in the period for the continuing group. |
| Convergence | Total households served by Consumer which have both a BT Group (any brand) fixed broadband and postpaid mobile connection present divided by total number of Consumer households, excluding voice fixed line. |
| Normalised free cash flow | For the continuing group free cash flow (net cash inflow from operating activities after net capital expenditure) after net interest paid, payment of lease liabilities, net cash flows from the sale of cash flows related to contract assets, monies received as prepayment for the sale of redundant copper, dividends received from non-current asset investments, associates and joint ventures, and net purchase or disposal of non-current asset investments, before pension deficit payments (including their cash tax benefit), payments relating to spectrum, and specific items. It excludes cash flows that are determined at a corporate level independently of ongoing trading operations such as dividends paid, share buybacks, acquisitions and disposals, repayment and raising of debt, cash flows relating to loans with joint ventures, and cash flows relating to the Building Digital UK demand deposit account which have already been accounted for within normalised free cash flow. For non-tax related items, other than for pension deficit payments, adjustments represent pre-tax cash flows and no allocation of tax refunded / (paid) relating to these adjustments has been included in or excluded from normalised free cash flow. |
| Specific items | Items that in management’s judgement need to be disclosed separately by virtue of their size, nature or incidence. In the current quarter these predominantly relate to restructuring charges and divestment-related items. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. |
