BT reported a 3% drop in half-year underlying revenue to £9.8bn. Weakness in the Consumer and International segments was steadied by a flat performance from Openreach, despite the latter seeing line losses of 242,000 (221,000 expected).
Underlying cash profits (EBITDA) were flat at £4.1bn, with cost savings and efficiency measures balancing revenue pressure.
Underlying free cash flow fell sharply, down 43% to £408mn, hit by higher capital spending and less favourable cash flow timings. Net debt rose from £19.8bn to £20.9bn over the first half.
Guidance was unchanged and BT expects underlying revenue of around £20bn and EBITDA in the £8.2–8.3bn range, with free cash flow of about £1.5bn.
An interim dividend of 2.45p per share was declared, up 2% on last year.
The shares were broadly flat in early trading.
Our view
HL view to follow.
BT key facts
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