BT is raising its connectivity targets after cost savings helped it post a slight increase in full-year core earnings after a 2% slip in revenue.
Its core earnings of £8.21 billion was up 1% on the previous year, below analysts’ expectations of £8.23bn.
Openreach’s full fibre (FTTP) network added 2.2 million premises in H2 (up from 2.1m in H1) to cover 18.08m and will accelerate its rollout by 20%. But broadband line losses to rivals hit 243,000 in the last quarter (up from 208k).
The board proposes a final dividend of 5.76 pence per share up from 5.69p, bringing the full year dividend to 8.16p, up 2%.
Allison Kirkby, chief executive, said: “BT Group delivered strong progress against its strategic priorities in FY25, as we stepped up the pace of build of the UK’s leading next generation networks.
“We set new record build and connect highs: our full fibre network now reaches more than 18m homes and businesses, with more than 6.5m already connected, and we were awarded the country’s best mobile network for the 11th year in a row recognising EE’s clear leadership in 5G.
“We also accelerated the pace of simplification and transformation, agreeing asset sales, improving customer satisfaction across all of our brands and business segments, and delivering over £900m of annualised cost savings.
“Although revenue declined year-on-year driven mainly by lower international sales and handsets, strong cost control and a step-up in focus and transformation resulted in growth in both EBITDA and normalised free cash flow, allowing us to increase our dividend for FY25 by 2% to 8.16p per share.
“The momentum in, and impact of, our full fibre programme is such that we are now raising our build target by 20% to up to 5m UK premises in FY26, keeping us comfortably on track to reach 25m by the end of 2026, while maintaining our cash flow guidance.
“We are now only one year away from our inflection to £2bn of normalised free cash flow, our target for FY27, and remain on track to deliver £3bn by the end of the decade.
“With the leadership team now in place to take our strategy forward, I am confident that as we build and connect at pace, our transformation will accelerate and deliver a better BT for all of us – our customers, our colleagues, the country and our owners.”
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