BT Group (BTA) H1 2026 earnings summary

Executive summary

• Delivered solid UK performance with record FTTP build and take-up, customer growth in broadband, mobile, and TV, and maintained network leadership in FTTP, 5G, and secure networking, despite international and legacy declines.

• Transformation program achieved £1.2 billion in annualized cost savings in 18 months, offsetting higher input costs and supporting stable EBITDA.

• Interim dividend increased 2% to 2.45p per share, in line with progressive policy.

• Four targeted international disposals agreed or completed, accelerating reshaping of international business.

• Profit before tax fell 11% to £862m, mainly due to higher depreciation/amortisation and finance expenses.

Financial highlights

• Adjusted revenue for H1 was £9.8 billion, down 3% year-over-year, mainly due to legacy voice, lower handset sales, and international declines.

• UK service revenue declined 1% to £7,726m, with a £100m drag from legacy voice.

• Adjusted EBITDA was flat at £4.1bn; UK businesses (excluding international) saw a 0.5% EBITDA increase.

• Reported CapEx rose 8% to £2,443m, driven by FTTP build and provision in Openreach.

• Normalized free cash flow was £408m, down from £715m last year, due to higher CapEx, prior year tax refund, and reduced working capital.

• IAS 19 pension deficit reduced to £3.8bn from £4.1bn.

Outlook and guidance

• FY26 guidance reconfirmed: adjusted revenue ~£20bn, UK service revenue £15.3–15.6bn, adjusted EBITDA £8.2–8.3bn, CapEx ~£5bn, normalized free cash flow ~£1.5bn.

• Sustained revenue and EBITDA growth expected from FY27, with free cash flow targeted at ~£2bn in FY27 and ~£3bn by FY30.

• Ambition to reach 25 million premises with fiber by December 2026 and 30 million by FY30, subject to regulatory and fiscal environment.

• Dividend policy remains progressive.