BT Group (LSE:BT.A) continued to advance its long-term infrastructure strategy over the past year, with Openreach’s full-fibre network now reaching 23 million premises, including 6.3 million in rural communities. The company said it remains on course to extend coverage to 25 million premises by December 2026. EE also expanded its 5G+ network footprint to cover 73% of the UK population, while customer satisfaction levels reached record highs. In addition, BT returned its Consumer division to growth across broadband, mobile and TV customers and streamlined its International segment through a series of targeted disposals.
The telecoms group reported adjusted revenue of £19.6 billion, down 4% year-on-year, while pressure on UK service revenue continued. However, adjusted EBITDA remained steady at £8.2 billion as BT accelerated its cost transformation programme, generating £580 million in annualised savings during the year. The company also increased its wider cost-saving ambition, lifting its FY30 transformation target to £3.7 billion.
Reflecting confidence in future cash generation, the board raised the full-year dividend to 8.32p per share and revised its distribution policy to target annual dividend growth in the low-to-mid single digits until leverage metrics align with a BBB+ credit rating. BT reiterated expectations for normalised free cash flow to improve to around £2 billion in FY27 and approximately £3 billion by the end of the decade, highlighting a stronger long-term outlook for cash flow and shareholder returns.
The group said its outlook continues to be supported by resilient financial performance and strategic execution, although technical indicators point to softer market momentum. Management commentary on the earnings call was positive regarding ongoing initiatives, while valuation measures indicate the shares remain fairly valued with an appealing dividend yield.
More about BT Group plc
BT Group plc is one of the UK’s largest telecommunications and network services providers. Operating through brands including BT, EE, Plusnet and Openreach, the company delivers fixed-line and mobile connectivity, full-fibre broadband, 5G services and enterprise communications solutions. BT’s strategy centres on expanding the UK’s digital infrastructure while serving consumer, business and international markets.
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