BT Group backs full-year guidance as Q1 core earnings rise

27th Jul 2023 07:41

(Sharecast News) - BT Group backed its guidance for 2024 on Thursday as it posted a rise in first-quarter core earnings.

In an update for the three months to 30 June, the company said pro forma adjusted earnings before interest, tax, depreciation and amortisation were up 5% to £2bn. Revenue flow through and cost control more than offset cost inflation, BT said.

Pro forma adjusted revenue rose 4% on the same period a year earlier to £5.2bn. BT said this was due to increased fibre-enabled product sales and price hikes in Openreach, increased service revenue in the consumer segment, with 2023 annual contractual price rises, and improved equipment trading in business.

Chief executive Philip Jansen said: "We've made a strong start to the year, in what remains a very competitive market, with improved customer satisfaction, pro forma revenue growth in all of our business units and pro forma group EBITDA up by 5%.

"Openreach is now 44% of the way through its full fibre build, and customer demand has continued to grow with a total network take-up rate of 32%. Consumer is seeing solid pro forma growth driven by pricing and mix, as customers choose higher performance connections; and business grew its order book, driving revenue growth for the combined unit. We continue to drive transformation across the group, and while there remains much to do it's clear that our strategy is working and BT Group is set up for success."