BT Group results for the half year to 30 September 2025

Delivering on our strategy in competitive markets

• Record FTTP build of over 2.2m in the 6 month period; FTTP footprint reached 20.3m premises, of which 5.5m in rural locations; on track to build up to 5m this fiscal year and reach our target of 25m by December 2026
• Record demand for Openreach FTTP with 1.1m net adds in H1; total premises connected grew to over 7.6m, again increasing our market-leading take-up rate, now 38%; Openreach broadband ARPU grew 4% year-on-year in H1 to £16.7, driven by CPI-linked price increases, higher FTTP take-up and speed mix
• Openreach broadband lines fell 242k in Q2, driven by losses to competitors and a weaker broadband market; our expectation for FY26 remains unchanged at twice the H2 FY25 run rate
• UK's best mobile network for a record-breaking twelfth consecutive year as awarded by RootMetrics, delivering the UK's best 5G experience; '5G+' standalone coverage up over 20ppts to 66% of the population and on track to deliver to 99% of the UK population by the end of FY30
• Landmark agreement with Starlink announced, increasing broadband choice in hard to reach areas
• Record retail FTTP base growth in H1 with Consumer up 476k to 3.7m and Business up 44k to 0.3m; 5G base reached 13.9m, up 11% year-on-year
• Consumer customer bases grew for a third consecutive quarter in broadband and a second consecutive quarter in postpaid mobile, with growth also in TV; year-on-year Consumer broadband ARPU down 1.4% to £41.9 and Consumer postpaid mobile ARPU down 1.6% to £19.3 year-on-year; we continue to expect a return to year-on-year service revenue growth in H2; Consumer fixed and mobile convergence increased to 25.9% from 23.1% this time last year
• Business unit now fully UK-focused, with a stabilising performance
• Transformation delivering ahead of plan with £247m gross annualised cost savings during H1 FY26 and a cumulative total of £1.2bn realised in the first 18 months of our £3bn programme; year-on-year energy usage in our networks was down 5%, total labour resource was down 6% to 111k and Openreach repair volumes were down 13%; plans advanced to reshape International
• BT Group NPS improved to 30.5, up 5.2pts year-on-year, demonstrating further improving customer experience

Financial performance on track; full year guidance reconfirmed

• Reported and adjusted¹ revenue £9.8bn, down 3%, due to declines in legacy voice, lower mobile handset trading volumes and declines in International, offset by an improving FTTP mix in Openreach
• Adjusted UK service revenue¹ £7.7bn, down 1%, due to declines in legacy voice and a competitive retail pricing environment, offset by an improving FTTP mix and price increases
• Adjusted¹ EBITDA £4.1bn, flat year-on-year, with strong cost transformation and cost control offsetting revenue flow through and higher National Insurance and National Living Wage costs
• Reported profit before tax £862m, down 11%, primarily driven by higher depreciation and amortisation from a higher asset base, and net finance expense driven by increased interest rates, offset by lower specific costs
• Capital expenditure¹ ('capex') £2.4bn, up 8%, reflecting increased FTTP provisioning and build activity
• Net cash inflow from operating activities £2.8bn; normalised free cash flow¹ £0.4bn, down £0.3bn due to higher cash capex, the absence of a prior year tax refund and lower net cash flows from working capital programmes
• Net debt £20.9bn (31 March 2025: £19.8bn), increasing mainly due to scheduled pension contributions of £0.8bn and the payment of the full year dividend partially offset by cash from trading activities
• Gross IAS 19 pension deficit of £3.9bn, a decrease from £4.1bn at 31 March 2025, mainly due to scheduled contributions offset by a decrease in credit spreads
• Interim dividend of 2.45 pence per share (pps) up 2% from 2.40pps in H1 FY25 in line with our policy of paying 30% of prior year's full year dividend pps
• FY26 Outlook reconfirmed: Adjusted¹ group revenue c£20bn, adjusted UK service revenue¹ of £15.3-£15.6bn and EBITDA of £8.2-£8.3bn; capital expenditure¹ excluding spectrum c. £5.0bn; normalised free cash flow¹ c. £1.5bn
• Mid-term guidance reconfirmed: Adjusted¹ group revenue and adjusted UK service revenue¹ sustained growth from FY27 and EBITDA growth ahead of revenue, enhanced by cost transformation; capital expenditure¹ excluding spectrum reducing by more than £1bn from FY26 level; normalised free cash flow¹ of c. £2.0bn in FY27 and c. £3.0bn by the end of the decade

Customer-facing unit updates

_{¹   See Glossary.
²   H1 and Q2 FY25 comparative information for the Business CFU has been re-presented to reflect the formation of the new International CFU and re-presentations of segmental revenue to reflect the nature of services and trading relationships between CFUs. Note 17 in the release presents a bridge between financial information for the half year to 30 September 2024 as published on 7 November 2024, and the comparatives presented in this release.
³   Net debt was £19,816 at 31 March 2025.
⁴   Includes spectrum investment of £1m.
n/m: comparison not meaningful}