BT Group PLC (LSE:BT.A) reported a 12% increase in pretax profit to £1.07 billion for the six months ended 30 September 2026, compared with £956 million a year earlier, supported by cost reductions and growth in adjusted EBITDA.
Revenue from continuing operations increased 1% to £8.75 billion, while adjusted EBITDA rose 1% to £4.10 billion. The telecommunications group maintained its full-year guidance and increased its interim dividend by 2% to 2.50 pence per share.
Revenue and Operating Earnings Increase
BT reported profit after tax from continuing operations of £835 million, up 14% from £734 million in the prior-year period.
Basic earnings per share from continuing operations increased 13% to 8.5 pence, while adjusted earnings per share rose 1% to 9.7 pence.
Adjusted service revenue declined 1% to £7.69 billion, reflecting continued reductions in traditional voice services.
Capital expenditure fell 5% to £2.28 billion as full-fibre network construction activity moderated.
Normalised free cash flow declined 59% to £236 million from £569 million, primarily due to higher working capital outflows.
Net debt increased to £21.0 billion from £20.0 billion at 31 March 2026, reflecting scheduled pension contributions and dividend payments, partly offset by operating cash generation.
Openreach Full-Fibre Connections Exceed 10 Million
Openreach recorded more than 1.1 million net full-fibre connections during the first half, taking total connected premises to 9.9 million at the end of September and more than 10 million in October.
The full-fibre network footprint expanded to 24.1 million premises, with BT expecting to reach its 25 million premises target in March 2027.
Full-fibre take-up reached 41%, while Openreach broadband average revenue per user increased 7% to £17.80.
However, Openreach recorded 366,000 broadband line losses during the first half and continues to anticipate approximately 800,000 losses for the full financial year.
Openreach adjusted EBITDA increased 4% to £2.24 billion.
Consumer and Business Divisions Report Mixed Performance
Consumer adjusted revenue increased 2% to £4.78 billion, although adjusted EBITDA declined 1% to £1.26 billion.
The division added 86,000 postpaid mobile customers and 26,000 television customers, while its broadband base declined by 7,000.
Consumer broadband average revenue per user fell 3% to £40.80, while postpaid mobile ARPU increased 3% to £19.80.
The Business division reported a 1% reduction in adjusted revenue to £2.57 billion, with adjusted EBITDA declining 7% to £601 million.
BT highlighted new business contracts involving the Ministry of Justice, Cabinet Office, Scottish Water and Royal Mail, alongside an expanded cybersecurity partnership with Microsoft.
Cost Transformation Delivers £312 Million in Savings
BT achieved £312 million in additional annualised cost savings during the first half, bringing cumulative savings under its transformation programme to £1.7 billion.
The group continues to target £3.5 billion in gross annualised savings by FY2030, measured on a continuing operations basis.
Network energy consumption declined 7%, while the total labour resource decreased 11% to approximately 90,000.
BT also reported a reduction of 16% in Openreach repair volumes.
TalkTalk Acquisition and Verizon Joint Venture Progress
BT completed the acquisition of TalkTalk out of administration on 5 October 2026, with the transaction intended to maintain service continuity for approximately 2.5 million UK customers.
The acquisition remains subject to the conclusion of a regulatory review.
Meanwhile, BT continues preparations for its proposed international joint venture with Verizon, which is expected to complete during the second half of calendar 2027.
Following the announcement of the proposed joint venture, BT’s International division is reported as a discontinued operation.
FY2027 Guidance Maintained and Dividend Increased
BT reiterated its full-year FY2027 financial guidance, forecasting adjusted revenue of £17.1 billion to £17.6 billion and adjusted service revenue of £15.1 billion to £15.4 billion.
Adjusted EBITDA is expected to reach £8.1 billion to £8.2 billion, with capital expenditure excluding spectrum forecast at £4.2 billion to £4.3 billion.
Normalised free cash flow is expected to reach approximately £2.0 billion, excluding the impact of the TalkTalk acquisition.
The group also maintained its medium-term target of approximately £3.0 billion in annual normalised free cash flow by the end of the decade.
BT declared an interim dividend of 2.50 pence per share, compared with 2.45 pence a year earlier. The dividend is scheduled for payment on 10 February 2027 to shareholders on the register on 29 December 2026.
More About BT Group
BT Group PLC (LSE:BT.A) is a UK telecommunications company providing broadband, mobile, business connectivity and digital infrastructure services. Its operations include BT, EE and Openreach, which develops and operates fixed-line communications infrastructure across the United Kingdom.
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