Trading update for the three months to 30 June 2025

Allison Kirkby, Chief Executive, commenting on the results, said:

“BT has had a solid start to the year, with our full fibre broadband now reaching more than 19 million homes and businesses and our 5G network available to over 87% of the UK population. We’re seeing strong customer demand for our next-generation broadband and mobile connectivity across all our brands, with record Openreach fibre take-up again this quarter. And we’re delivering on our transformation, as we radically simplify our business while improving customer experience.

“BT is investing more than anyone else in the nation’s networks, we’re connecting customers faster, and we’re on track to deliver our targets for this year, next year, and the end of the decade - creating a better BT, for all of us.”

Strategic priorities delivering to plan:

• More than 1m premises passed with FTTP for a sixth consecutive quarter, at an average build rate of 81k per week, on track to achieve up to 5m this fiscal year; FTTP footprint reached more than 19m premises, of which 5.2m in rural locations
• Record customer demand for Openreach FTTP with net adds up 46% year-on-year to 566k; total premises connected 7.1m, increasing our market-leading take up rate to 37%; Hyperoptic has entered into a wholesale agreement with Openreach, further extending its national footprint; Openreach broadband ARPU up 4% to £16.6, driven by higher FTTP take-up, speed mix and price increases
• Openreach broadband lines fell by 169k, driven by losses to competitors and a weaker broadband market; our full year expectation remains unchanged from that given in May
• Retail FTTP base grew by 32% year-on-year to 3.7m of which Consumer 3.4m and Business 0.3m; 5G base reached 13.5m, up 12% year-on-year
• Consumer customer base grew in the quarter, with broadband base up 11k and postpaid mobile base up 41k; Consumer broadband ARPU² down 2% year-on-year to £41.9 and postpaid mobile ARPU² of £19.4 broadly flat year-on-year, and we continue to expect a similar seasonal growth pattern as FY25; Consumer fixed and mobile convergence grew to 25.5% from 24.6% last quarter; EE proud to be sponsors of the Lionesses as they head towards the UEFA Euro 2025 final
• Business adjusted UK service revenue down 2%, stable excluding traditional voice; EBITDA pressure was mainly in the international segment; Business will be reported as two separate customer-facing units from Q2 FY26 for our UK and International operations
• Cost transformation delivered efficiencies across all units, fully offsetting higher employer costs of National Living Wage and National Insurance: year-on-year energy usage in our networks was down 5%, total labour resource was down 5% to 113k and Openreach repair volumes were down 14%
• BT Group NPS of 30.4, up 5.6pts year-on-year, with improved customer experience across all our customer facing units

On track to achieve full year guidance:

• Reported and adjusted revenue¹ £4.9bn, down 3% year-on-year mainly due to weaker handset sales in Consumer and continued challenging international trading, offsetting the benefit of FTTP growth in Openreach and price increases; Adjusted UK service revenue¹ £3.9bn, down 1%, largely due to the seasonal impact of price changes in Consumer and traditional voice in Business
• Adjusted EBITDA¹ £2.1bn, down 1% with adverse revenue offset by strong cost transformation
• Reported profit before tax of £468m, down 10% primarily due to an increase in net finance costs and depreciation and amortisation
• Reconfirming all FY26 and multi-year financial outlook metrics

_{¹  See Glossary below
²  As reported at Q4 FY25, broadband and postpaid mobile ARPUs for Q1 FY25 have been restated following a reassessment of the EE One treatment which resulted in a reclassification of revenues between product types.
³  Following a review of trading relationships relating to a number of Openreach pass-through services, a number of customers were transferred from Business to Openreach. Q1 FY25 has been restated to remove £24m revenue from Business. There is no impact on Openreach segmental results as the revenue was previously classified as internal so was already included in Openreach results; there is a contra entry through intra-group items.
n/m: comparison not meaningful.}

Glossary

Our commentary focuses on the trading results on an adjusted basis. This is consistent with the way that financial performance is measured by management and reported to the Board and the Executive Committee and assists in providing a meaningful analysis of the trading results of the group. Reported revenue and reported profit before tax are the equivalent unadjusted or statutory measures and are reconciled in pages 228 to 230 of the Annual Report 2025.

Adjusted revenue: Adjusted revenue is before specific items. Adjusted results are consistent with the way that financial performance is measured by management and assist in providing an additional analysis of the reporting trading results of the group.

Adjusted UK service revenue: Adjusted UK service revenue comprises all UK revenue less UK equipment revenue. Some revenue from equipment is included within adjusted UK service revenue where this is sold as part of a managed services contract or where that equipment cannot be practicably separated from the underlying service. Adjusted UK service revenue excludes revenues from our International channel within our business segment as they are international in nature.

Adjusted EBITDA: Earnings before interest, tax, depreciation and amortisation, before specific items, share of post tax profits/losses of associates and joint ventures and net finance expense.

International: International comprises our Global channel and international elements of our Portfolio channel within our Business segment. International will be reported as a separate CFU from Q2 FY26.

Specific items: Items that in management’s judgement need to be disclosed separately by virtue of their size, nature or incidence. In the current quarter these relate to our assessment of our provision for historic regulatory matters, restructuring charges, divestment-related items, Sports JV-related items and net interest expense on pensions. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence.

We are scheduled to announce the second quarter and half year results for FY26 on 6 November 2025.

Forward-looking statements – caution advised

Certain information included in this announcement is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company’s plans and objectives for future operations. Forward looking statements can be identified by the use of forward looking terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘plans’, ‘projects’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. Forward looking statements in this announcement are not guarantees of future performance. All forward looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward looking statements, which speak only at their respective dates. Additionally, forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

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About BT Group

BT Group is the UK’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services.

BT Group consists of three customer-facing units: Consumer serves individuals and families in the UK; Business covers companies and public services; Openreach is an independently governed, wholly owned subsidiary wholesaling fixed access infrastructure services to its customers - over 700 communications providers across the UK.

British Telecommunications plc is a wholly owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about