BT Group (BTA) H1 2025 earnings summary

Executive summary

• Achieved record FTTP rollout, reaching over 16 million premises with a 35% take-up rate, and expanded 5G coverage to 80% of the UK population.

• Solid progress on strategic priorities, including cost transformation, customer satisfaction, and productivity initiatives, with £433m gross annualised savings and total labour resource down 4% year-over-year.

• Consumer and Business units saw FTTP and 5G base growth, though Business faced tough trading, especially outside the UK.

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

• Structural transformation and cost discipline supported EBITDA and free cash flow growth.

Financial highlights

• Adjusted revenue for H1 FY25 was £10.1bn, down 3% year-over-year, mainly due to non-UK trading and competitive retail environment.

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

• Normalised free cash flow was £715m, up 57% year-over-year, aided by lower working capital outflow and a £100m tax refund.

• Reported CAPEX was just under £2.3bn, down 2% year-over-year.

• Net debt increased to £20.3bn, mainly due to pension contributions.

Outlook and guidance

• FY25 group revenue now expected to decline 1–2% due to weaker global trading and softer UK macro environment.

• FY25 EBITDA guidance reaffirmed at around £8.2bn; CAPEX expected below £4.8bn; normalised free cash flow guidance maintained at around £1.5bn.

• Mid-term: sustained adjusted revenue and EBITDA growth, capex below £4.8bn until FY26, normalised free cash flow targeted at £2.0bn in FY27 and £3.0bn by decade end.

• Progressive dividend policy maintained; outlook for all metrics beyond FY25 unchanged.