Results for the full year to 31 March 2025

BT Group plc

22 May 2025

Strong delivery against our strategy

•   Record FTTP build of 4.3m premises passed in the year; FTTP footprint reached more than 18m premises, of which 4.9m in rural locations

•   Record demand for Openreach FTTP with quarterly net adds above 500k for the first time; total premises connected over 6.5m, increasing our market-leading take up rate to 36%; Openreach broadband ARPU in the year grew by 6% to £16.0, driven by higher FTTP take-up, speed mix and CPI

•   Openreach broadband lines fell 243k in Q4, driven by losses to competitors and a weaker broadband market; expect the H2 run rate to continue through FY26

•   New FTTP build target of up to 5m announced for FY26, to accelerate FTTP benefits including take-up and underpinning the December 2026 target of 25m

•   UK's best mobile network for the eleventh consecutive year as awarded by RootMetrics; tenth year of best network with umlaut connect; best 5G availability with speedtest; 5G standalone rolled out across 50 major UK towns and cities, covering over 40% of the population

•   Retail FTTP base grew by 33% year-on-year to 3.4m, of which Consumer was 3.2m and Business was 0.2m; 5G base reached 13.2m, up 15% year-on-year

•   Consumer customer bases relatively stable in the year with a return to growth in the broadband base in Q4; Consumer broadband ARPU¹ up 2.4% year-on-year to £42.2; Consumer postpaid mobile ARPU¹ £19.4 in line year-on-year; Consumer fixed and mobile convergence grew to 24.6% from 22.9% last year

•   Business continued to refocus on the UK with disposals of operations in Ireland and, after the period end, Italy; the Emergency Services Network contract was secured for another seven years

•   Transformation delivering ahead of plan with £913m of gross annualised cost savings during FY25 at a cost to achieve in line with our plan of £448m; energy usage in our networks was down 4% and total labour resource was down 3% to 116k; we achieved a 10% reduction in Openreach repair volumes

•   BT Group NPS improved to 29.5, up 4.7pts year-on-year, demonstrating further improving customer experience across all three customer facing units

Continued EBITDA growth in FY25 and normalised free cash flow² ahead of guidance

•   Reported and adjusted² revenue £20.4bn, down 2%, mainly due to continued challenging trading conditions in our Global and non-UK Portfolio channels and weaker handset trading in Consumer, offsetting the benefit of FTTP growth in Openreach and price increases; Adjusted UK service revenue² £15.6bn, down 1%, largely due to legacy voice declines

•   Adjusted² EBITDA £8.2bn, up 1%, driven by strong cost transformation

•   Reported profit before tax £1.3bn, up 12%, primarily due to goodwill impairment in the prior year, offset by higher specific costs and net finance expense

•   Capital expenditure² ('capex') £4.9bn broadly in line with the prior year

•   Net cash inflow from operating activities £7.0bn; normalised free cash flow² £1.6bn, up 25% due to higher EBITDA and a lower working capital outflow

•   Net debt £19.8bn (31 March 2024: £19.5bn), increased mainly due to our scheduled pension scheme contributions of £0.8bn partly offset by free cash flow

•   Gross IAS 19 pension deficit of £4.1bn, a decrease from £4.8bn at 31 March 2024 mainly due to scheduled contributions

•   Final dividend of 5.76 pence per share (pps) up from 5.69pps, bringing the full year dividend to 8.16pps, up 2%

•   FY26 Outlook: Adjusted² group revenue c£20bn and adjusted² UK service revenue of £15.3-£15.6bn and EBITDA of £8.2-8.3bn; capital expenditure excluding spectrum c. £5.0bn; normalised free cash flow² c. £1.5bn

•   Mid-term guidance: Adjusted² group revenue and adjusted² UK service revenue sustained growth from FY27 and EBITDA growth ahead of revenue, enhanced by cost transformation; capital expenditure excluding spectrum reducing by more than £1bn from FY26 level; normalised free cash flow² of c. £2.0bn in FY27 and c. £3.0bn by the end of the decade

¹ Consumer have reassessed the treatment of EE One and more specifically the standalone selling price of each good and service provided to the customer under the converged offering, and as such the allocation of the total transaction price to be received under the contract to each distinct product. This has resulted in a reclassification of revenues between product types.

² See Glossary on page 8.

Customer-facing unit updates

Performance against FY25 outlook

¹See Glossary on page 8.

 n/m: comparison not meaningful