Shares in BT Group PLC saw a notable 3.5% rise, even as the telecoms giant reported a 10% fall in pre-tax profits and a dip in broadband line numbers.
The FTSE 100-listed firm posted revenues of £4.9 billion for the quarter ending 30 June — a 3% year-on-year drop. The fall was largely due to lower mobile handset sales and ongoing pressures in international markets, which the company described as “challenging”.
Despite the decline in topline figures, BT reiterated its confidence in both its full-year and mid-term financial targets — a move that appeared to boost investor sentiment.
A key area of growth came from Openreach, where full-fibre broadband net customer additions rose sharply by 46%, hitting 566,000. However, this was offset by a reduction of 169,000 in overall broadband lines, a figure the company said was “in line with expectations.”
Adjusted EBITDA came in at £2.1 billion — a modest 1% dip. Profit before tax, however, fell to £468 million, down 10%, a fall largely attributed to increased depreciation and higher finance costs.
In a clear effort to streamline operations, BT reduced its workforce by 5%, bringing its total headcount down to 113,000. These efficiency drives were said to have “fully offset” recent cost pressures, including minimum wage hikes and higher National Insurance contributions.
Chief executive Allison Kirkby remained optimistic, saying: “It was a solid start to the year” She emphasised her focus on transforming the business and stated her intent to “radically simplify our business while improving customer experience”.
In a major leadership update, BT confirmed that Patricia Cobian will take over as Group Chief Financial Officer in 2026. She will succeed Simon Lowth, who plans to retire after a nine-year tenure.
Cobian, currently serving as CFO at Virgin Media O2, is expected to join BT’s board and executive committee next year. The company noted that a formal start date will be confirmed later. Lowth will remain in his role to ensure a smooth handover during the transition.
While the numbers may point to a turbulent quarter, investors appear unfazed — perhaps reassured by BT’s ability to maintain its long-term outlook and continue pushing ahead with transformation plans.
The market’s reaction suggests confidence in Kirkby’s leadership and the upcoming changes at the financial helm. With a strategic focus on efficiency and full-fibre expansion, BT is betting on stability amid an evolving telecoms landscape.
