BT suffered a weak Q2 with revenue and (particularly) EBITDA declines accelerating, but this was mainly down to timing (particularly at Openreach, which will likely recover in Q3), with the company confident in maintaining full year expectations.
BT’s fixed broadband business enjoyed some recovery as the pricing environment improves, but will suffer another price timing bump next quarter, and its mobile business is suffering from a tough market environment that is unlikely to improve in the short term.
The company is busy re-branding, re-positioning and transforming, but the outlook for football rights costs and fibre roll-out regulation will dominate in the short term, and further bumps (such as the Virgin MVNO contract loss) may emerge.
Revenue and EBITDA declines accelerate
Broadband solid, but some pain to come
Reality bites mobile a bit more
Openreach hits a bump, but outlook still strong
Guidance maintained, outlook remains balanced
List of charts/tables
Figure 1. AEBITDA growth by division
Figure 2. Revenue growth
Figure 3. BT Group revenue and EBITDA growth
Figure 4. Broadband net adds (000)
Figure 5. BT Consumer fixed operating performance
Figure 6. Broadband entry level dual-play pricing, new customers (£/month)
Figure 7. Broadband high speed pricing, new customers (£/month)
Figure 8. BT’s mobile operating performance
Figure 9. Openreach FTTC ARPU (£)
Figure 10. Fibre take-up (FTTx)
Figure 11. Openreach ultrafast coverage net adds (000s of premises)
Figure 12. Openreach/CityFibre overbuild stats
Figure 13. Selected Openreach FTTP list prices (£/month)