BT Group plc (BT.A) has reported results for the half year to 30 September 2026, posting group revenue of £8.75 billion, up 1% year on year on a continuing operations basis. Adjusted EBITDA rose 1% to £4.1 billion, while reported profit before tax climbed 12% to £1.071 billion. The company declared an increased interim dividend of 2.50 pence per share and reiterated its full-year and mid-term guidance, including normalised free cash flow of approximately £3.0 billion by the end of the decade.

Key Points

  • BT Group plc (BT.A), the UK's largest fixed and mobile telecommunications provider
  • H1 FY27 revenue of £8.75bn, adjusted EBITDA of £4.1bn, and reported profit before tax of £1.071bn, all on a continuing operations basis
  • Interim dividend raised to 2.50 pence per share, payable 10 February 2027; Openreach FTTP footprint expanded to 24.1 million premises passed
  • Investors will be watching progress on the Verizon international joint venture, the TalkTalk regulatory review, and FY27 normalised free cash flow guidance of approximately £2.0 billion

Openreach Records 10 Million Full Fibre Connections as FTTP Footprint Reaches 24.1 Million Premises

Openreach, BT's nationwide network division, delivered record first-half FTTP net additions of 1.1 million, bringing total premises passed to 24.1 million. The announcement states that more than 10 million full fibre connections were reached in October 2026, with take-up climbing to 41%. Openreach broadband average revenue per user of £17.8 grew 7% year on year, driven by CPI-linked price increases and higher FTTP take-up. BT expects to reach its 25 million build target in March. Broadband line losses totalled 366,000 in the six-month period, and the company continues to expect losses of approximately 800,000 for the full year.

BT Group Reports £312 Million of Annualised Savings in H1 as Transformation Programme Targets £3.5 Billion by FY30

BT's cost transformation programme delivered £312 million of annualised savings in the first half, bringing the cumulative total to £1.7 billion at a cost to achieve of £0.8 billion. The programme targets gross annualised cost savings of £3.5 billion by FY30, with a total cost to achieve of £1.2 billion, re-presented on a continuing operations basis following the reclassification of the International division as a discontinued operation. Operational efficiencies improved across the period, with network energy usage down 7%, total labour resource down 11% to 90,000, and Openreach repair volumes down 16%. The FY30 headcount target is now 65,000 to 70,000, excluding International.

TalkTalk Acquisition and Verizon Joint Venture Shape BT's Near-Term Strategic Outlook

BT acquired TalkTalk out of administration on 5 October 2026, protecting service continuity for 2.5 million UK customers, though the transaction remains subject to regulatory review. Separately, the proposed international joint venture with Verizon, which reclassifies the International division as a discontinued operation, is on track to complete in the second half of calendar 2027. BT has stated it will provide further financial detail on the TalkTalk acquisition's effect on revenue, EBITDA, and capital expenditure after completing acquisition accounting later this fiscal year, meaning investors do not yet have full consolidated guidance incorporating TalkTalk.

Interim Dividend Raised to 2.50p and Full-Year Normalised Free Cash Flow Guidance Reconfirmed at Approximately £2.0 Billion

BT declared an interim dividend of 2.50 pence per share, up 2% from 2.45 pence in H1 FY26, payable on 10 February 2027 to shareholders on the register on 29 December 2026. The company reconfirmed its FY27 guidance, targeting adjusted revenue of £17.1 billion to £17.6 billion, adjusted EBITDA of £8.1 billion to £8.2 billion, and normalised free cash flow of approximately £2.0 billion, excluding TalkTalk effects. Net debt stood at £21.0 billion as at 30 September 2026, up from £20.0 billion at 31 March 2026. The gross IAS 19 pension deficit narrowed to £3.2 billion from £4.2 billion, following scheduled contributions over the period.