BT Group (BTA) H1 2025 earnings summary

Executive summary

• Achieved solid progress on strategic priorities, including record full fiber (FTTP) build, cost transformation, and improved customer satisfaction, with strong growth in 5G and fiber bases across Consumer and Business segments.

• Openreach delivered record FTTP build and connections, reaching over 16 million premises with a 35% take-up rate and market-leading ARPU and NPS.

• Cost reduction and productivity initiatives ahead of plan, delivering over £400 million run rate savings and supporting EBITDA and free cash flow growth.

• Business segment accelerated its global carve-out and transition to a U.K.-focused model, but faced tough trading outside the U.K.

• Interim dividend increased by 4% to 2.40p per share, in line with progressive policy.

Financial highlights

• Adjusted revenue for H1 2024 was £10.1 billion, down 3% year-over-year, mainly due to weakness outside the U.K.

• Adjusted EBITDA rose 1% to £4.1 billion, driven by cost transformation and operational efficiency.

• Normalized free cash flow was £715 million, up 57% year-over-year; reported CAPEX was just under £2.3 billion, down 2%.

• Net cash inflow from operating activities was £3.0 billion, up 29%; net debt increased to £20.3 billion, mainly due to pension contributions.

• Basic EPS was 7.8p, down 9% year-over-year; adjusted basic EPS 10.7p, up 4%.

Outlook and guidance

• FY25 group revenue now expected to decline 1–2% (previously guided for 0–1% growth), reflecting weaker global trading and softer U.K. macro environment.

• FY25 EBITDA guidance reconfirmed at around £8.2 billion; CAPEX expected below £4.8 billion; normalized free cash flow guidance maintained at around £1.5 billion.

• Mid-term: sustained adjusted revenue and EBITDA growth ahead of revenue, with capex under £4.8 billion until FY26, reducing by ~£1 billion post-peak FTTP build.

• Normalized free cash flow expected at ~£2.0 billion in FY27 and ~£3.0 billion by end of decade.

• Outlook for all metrics beyond FY25 remains unchanged; progressing towards BBB+ credit rating.