Consumer business stands out in modest BT Q3 | Major Businesses | Business
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As the Gavin Patterson era ends, UK incumbent telco BT has turned in a rather flat third quarter of its current financial year.
broadband 21Aug2018
For the nine-month period ended 30 December 2018, BT reported revenue of £17.558 billion, slipping 1% annually, with underlying revenue down 0.9%4 as growth in consumer business was offset by regulated price reductions in the Openreach business line and declines in enterprise businesses. Adjusted EBITDA was broadly flat at £5.553 billion mainly driven by revenue growth in consumer business and restructuring related cost savings. Profit after tax for the three quarters was £1.646 billion, up 26% year-on-year.

In BT’s consumer division, revenue growth was driven by BT’s September 2018 price increase and the continued increase in handset costs for customers, partially offset by solus voice reductions. EBITDA growth was driven by the price increase and a one-off accounting charge, on a pro forma basis in the prior year, due to a change in contract terms of Openreach FTTC connections.

Openreach revenue decline was driven by around £180 million of regulated price reductions on BT’s FTTC and Ethernet products, the impact of the Openreach volume discount offer, and a decline in the BT physical line base. In its results, BT reported 680,000 fibre broadband net additions during the third quarter.