BT Group (BTA) H1 2027 earnings summary

Executive summary

• H1 FY27 revenue rose 1% to £8.753bn and adjusted EBITDA increased 1% to £4.097bn; transformation savings and Openreach growth offset service-revenue pressure.

• Openreach passed 24.1m premises, with 9.9m FTTP connections at H1 and the 10m milestone reached in October; NPS improved and postpaid mobile added 86k customers.

• FY27 and medium-term guidance were reaffirmed; TalkTalk was acquired out of administration and the Verizon international joint venture is progressing.

Financial highlights

• Reported revenue was £8.753bn, up 1%; adjusted revenue was £8.750bn, up 1%, and adjusted service revenue was £7.685bn, down 1%, or flat excluding voice drag.

• Adjusted EBITDA rose 1% to £4.097bn; reported operating profit increased 9% to £1.716bn and reported profit before tax rose 12% to £1.071bn.

• Normalised free cash flow fell 59% to £236m; capital expenditure was £2.282bn, down 5%, and reported operating costs fell 1% to £7.037bn.

• Continuing-operations profit after tax was £835m, up 14%; reported basic EPS was 8.5p, up 13%, and adjusted basic EPS was 9.7p, up 1%.

• Interim dividend rose 2% to 2.50p per share.

Outlook and guidance

• FY27 guidance, excluding TalkTalk, remains adjusted revenue of £17.1bn–£17.6bn, adjusted service revenue of £15.1bn–£15.4bn and adjusted EBITDA of £8.1bn–£8.2bn.

• FY27 capital expenditure guidance is £4.2bn–£4.3bn; normalised free cash flow target remains ~£2.0bn, excluding TalkTalk transaction effects.

• Medium-term targets include sustained revenue and service-revenue growth, EBITDA growth ahead of service revenue, and normalised free cash flow of ~£3.0bn by FY30.

• FY27 service-revenue guidance includes a £150m–£200m voice headwind; Consumer EBITDA is expected to be fairly flat for FY27, while Business EBITDA is expected to improve in H2.

• Transformation targets £3.5bn of gross annualised savings by FY30; fibre plans remain 25m premises by March and ~30m by FY2032, with further rural build linked to BDUK funding.