BT Group adjusted earnings, revenue fall in Q3, maintains full year outlook
Source - SMW
BT Group reported adjusted earnings fell 2% to £1,826m while revenues fell by 3% to £5,970m in the third quarter to 31 December 2017 amid higher business rates and pensions costs.
Net cash inflow from operating activities grew by £81m to £1,596m and normalised free cash flow grew by £96m to £702m mainly due to working capital phasing.
Openreach fibre connections rose to record high of 600,000, with superfast fibre broadband passing 27.4m UK premises.
The group said it expects its openreach division to deliver FTTP to 3m premises by the end of 2020, setting a fresh course to reach 10m homes and businesses by mid-2020s with the right conditions.
Gavin Patterson, Chief Executive, commenting on the results, said
'Our third quarter financial results are broadly in line with our expectations and we remain confident in our outlook for the full year.'
'We continue to work closely with the UK Government, Ofcom and our customers to expand the deployment of fibre and Openreach recently announced plans to accelerate our FTTP deployment to three million premises by the end of 2020.'
'We agreed a reciprocal wholesale deal with Sky that will deliver market leading sports and entertainment channels to our BT TV platform by early 2019, reinforcing our strategic goal of being the best provider in the UK of converged network services.'
'The triennial valuation of the BT Pension Scheme is proceeding and constructive discussions continue with the BTPS Trustee.'
'We still expect to complete the valuation in the first half of the 2018 calendar year. Our aim remains to deliver fair, flexible and affordable pensions to all of our employees.'