BT sales slip after shedding broadband customers

Pre-tax profits fell to £183 million for the quarter after being hit by losses linked to its sports joint venture.

BT said it is still on track to meet its financial guidance for the current year (BT Group/PA) (PA Media)

BT has revealed a drop in sales after shedding 210,000 broadband customers in the latest quarter, as profits were also knocked by losses linked to its TNT Sports business.

Nevertheless, the customer decline was better than forecast, with analysts having predicted it would lose more than 230,000 customers.

The company said it is now projecting the loss of 850,000 Openreach fixed-line broadband customers for the full year, down from a previous 900,000 estimate.

However, it revealed that demand for full fibre coverage jumped, with an increase of 571,000 customers for the quarter.

The telecoms giant reported that revenues fell by 4% to £5 billion in the quarter to December 31 due to service revenue declines.

It was also impacted by lower equipment revenues, largely linked to weakness in handsets, and divestments.

Adjusted UK service revenues fell by 2% to £3.8 billion for the quarter.

Meanwhile, pre-tax profits fell to £183 million for the quarter, compared with £427 million a year earlier, after being hit by £214 million of losses related to its sports joint venture behind TNT Sports.

It runs the joint venture alongside US media giant Warner Bros Discovery, which has been at the centre of a bidding war between rivals Netflix and Paramount Skydance.

BT stressed that it is still on track to meet its financial guidance for the current year.

Allison Kirkby, chief executive of BT, said: “BT continues to deliver on its strategy – building and connecting the UK to the best next-generation networks at record pace, while accelerating our transformation.

“Our network leadership strengthened further in the quarter, with full fibre broadband now reaching more than 21 million homes and businesses, and our 5G+ network accessible to 69% of the population.

“Openreach achieved record full fibre connections and our consumer division again added customers in broadband, mobile and TV, as we make the most of all our brilliant brands – EE, BT and Plusnet.”