Full-year underlying revenue fell 4% to £19.6bn (£19.7bn expected). Declines in Consumer, Business and International were partly offset by growth at Openreach, where higher fibre take-up and price increases helped steady performance, despite ongoing broadband line losses.
Underlying cash profit (EBITDA) was broadly flat at £8.2bn (£8.2bn expected), with cost savings helping to offset weaker revenue.
Free cash flow fell 6% to £1.5bn (£1.5bn expected). Net debt was broadly stable, ending the period at £20.0bn. A final dividend of 5.87p was announced, up 2%, bringing the full year total to 8.32p.
Full-year guidance points to underlying revenue of £19.0-19.5bn in FY27, with underlying cash profit expected to grow to £8.2-8.3bn. BT also reiterated its target for free cash flow to rise to around £2.0bn in FY27 and around £3.0bn by the end of the decade.
The shares were broadly flat in early trading.
Our view
HL view to follow.
BT key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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