BT's profits tumble but full fibre demand surges by 571,000 customers

BT has reported a mixed set of results for its latest quarter, with falling profits but stronger-than-expected broadband trends. The company lost 210,000 broadband lines, yet demand for its full fibre service surged by over half a million customers. Shares edged up slightly after the announcement, reflecting investor confidence in the long-term outlook.

The telecoms giant saw its pre-tax profit drop sharply to £183 million, down from £427 million a year earlier. This decline was largely tied to losses in its sports joint venture, which operates TNT Sports. Meanwhile, total revenue fell by 4 per cent to £5 billion, driven by lower service and equipment sales.

Adjusted UK service revenue also slipped by 2 per cent to £3.8 billion. Despite these declines, BT revised its forecast for annual line losses downward. It now expects to lose 850,000 lines over the year, an improvement from the earlier estimate of 900,000. Analysts had predicted a steeper drop of 210,000 Openreach lines in the quarter, but the actual figure matched expectations.

On a brighter note, demand for full fibre coverage grew strongly, with 571,000 new customers signing up. By the end of 2023, around 21 million UK households and businesses—about 75 per cent of the total—still lacked access to BT's full fibre network (FTTP).

The company reaffirmed its financial targets, including plans to boost cash flow to £2 billion next year and £3 billion by the end of the decade. BT shares have climbed over 42 per cent in the past year, with a small rise of 0.61 per cent on Thursday following the results.

BT's latest figures show a challenging quarter, with lower profits and revenue but better-than-feared broadband losses. The strong uptake in full fibre suggests growing customer interest in faster connections. With financial targets still on track, the company appears focused on expanding its network and improving long-term cash flow.