BT's shares saw a downturn of up to 3.9% in early trading today after the telecoms giant revised its growth forecast for the year downwards.
The firm disclosed a marginal drop in revenue for the half-year ending on 30 September 2024, attributing it to what it describes as challenging conditions within its enterprise division and heightened competition in the consumer segment, as reported by .
As a result of these challenges, BT has adjusted its growth expectations for the current fiscal year.
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In a detailed account, BT announced that its adjusted revenue fell by three percent over the period to £10.1bn, primarily due to "challenging conditions in business, principally driven by non-海角视频 trading in our global and portfolio channels."
The company also noted that its consumer operations were impacted by smaller inflation-related price increases, intensified market competition, and a decline in customer numbers.
Despite these setbacks, BT reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) of £4.1bn, which is a one percent increase from the previous year, aided by reduced costs.
The reported pre-tax profit stood at £1bn, marking a decrease of 10 percent, which was attributed to diminished revenue, escalated costs, and additional finance expenses.
Looking ahead, BT has indicated a positive trend stemming from reduced capital expenditure over the last two years, with the latest figures showing a continuation of this pattern.
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Although the company's primary financial metrics experienced pressure, capital spending for the period was reported at £2.3bn, a reduction of two percent, signalling the end of BT's peak capital investment phase.
Normalised free cash flow for the period reached £0.7bn, marking a 57 percent increase attributable to heightened EBITDA, favourable working capital flows, and a tax refund.
The corporation disclosed a net debt of £20.3bn at September's close, an elevation from the £19.5bn noted at March's end, attributed by BT to scheduled pension contributions and the timing associated with the final dividend payment.
Regarding dividends, BT has instituted an interim dividend of 2.4p per sharea rise of 2.3 percentage points compared to its half-year disbursement.
Looking ahead to 2025, the firm anticipates a modest dip in revenue yet foresees persistent EBITDA growth, facilitated by reduced capital expenditure requisites.
Allison Kirkby, the Chief Executive Officer, reflected: "We have accelerated the modernisation of BT Group in the first half of the year. We've ramped up our full fibre build and connections, seen further improvements in customer satisfaction, and our cost transformation contributed to growth in EBITDA and normalised free cash flow despite revenue declines driven by our non-海角视频 operations and a competitive retail environment."
She continued, "We are confirming our EBITDA, capex and cash flow guidance for FY25, albeit on lower revenue guidance. We remain firmly on track to meet our long-term cost savings and cash flow targets, and today announce an interim dividend of 2.40pps. The accelerated modernisation of our operations, combined with a focus on connecting the 海角视频, puts us in a strong position to generate significant value for all our stakeholders."