London, November 2, 2023
BT Group, one of the UK’s leading telecommunications companies, announced a significant surge in profits for the first half of the financial year, attributing the success to robust cost-cutting strategies and strategic investments in its network infrastructure.
In the six months ending September 30, BT Group reported a remarkable 29% increase in pre-tax profits, reaching £1.1 billion. The company’s turnover also witnessed a growth of 3%, amounting to £10.4 billion, driven by price hikes and sales of its fiber-enabled products.
This surge in profits comes after BT initiated a cost-saving initiative last year, aiming to achieve £500 million in additional savings by 2025. The company announced that it is well on track to meet this target, having made gross annualized savings of £2.5 billion since April 2020. These savings have helped offset inflationary pressures and other one-off expenses from the prior year.
BT Group’s focus on cost reduction has not deterred its investments in technological advancements. The company successfully delivered ultrafast full-fiber broadband to a record 860,000 premises during the recent quarter. Consequently, its Fiber to the Premises (FTTP) network now covers an impressive 12 million buildings across the UK.
Outgoing CEO Philip Jansen expressed optimism about the company’s future, stating, “We’re rapidly building and connecting customers to our next-generation networks, simplifying our products and services. We’re now seeing predictable and consistent revenue and EBITDA growth.”
BT Group’s future plans include the installation of full-fiber broadband across 25 million UK homes and businesses by the end of 2026, a venture expected to cost £15 billion. To achieve this, BT’s Openreach arm is set to invest substantially in expanding its fiber network, with approximately one-third of the premises in hard-to-reach rural areas.
Additionally, the company plans to reduce its workforce by up to 55,000 employees by 2030, with over 40% of its global workforce expected to be replaced by artificial intelligence, emphasizing its commitment to efficiency and innovation.
Incoming CEO Allison Kirkby, slated to replace Philip Jansen early next year, will be tasked with achieving BT Group’s ambitious £3 billion cost savings target while expanding its 5G and full-fiber network. Experts believe Kirkby’s tenure will usher in a new era for BT, marked by strategic efficiency and technological advancement.
BT Group’s shares responded positively to the news, surging by 6.3% to 118.05p on Thursday morning. Although the shares have experienced a 7.5% decline over the past 12 months, the recent financial results have bolstered investor confidence, positioning the company for a promising future in the rapidly evolving telecommunications industry.
