BT Group's Profit Rises as Fiber Demand Hits Record

BT Group delivered a strong first half, with adjusted EBITDA rising 1% year-on-year to £4.1 billion, as the company continues to benefit from cost transformation initiatives and growth in its mobile business. The results, reported for the six months ending September 30, 2026, were bolstered by record demand for Openreach’s full fibre broadband, with over 10 million homes now connected and a take-up rate reaching 41% – a key indicator of successful network buildout.

This surge in fiber demand is translating into higher revenue for Openreach, with broadband ARPU growing 7% year-on-year driven by CPI-linked price increases and a shift towards faster speeds. While overall adjusted service revenue edged down 1% to £7.7 billion due to a continuing decline in voice revenue, the company’s strategic focus on network modernization and customer growth is offsetting these pressures. The company also saw an increase in its consumer customer base, with 86,000 postpaid mobile additions, alongside growth in TV subscriptions.

BT Group is actively managing its capital expenditure, reducing it by 5% to £2.3 billion, while simultaneously investing in future growth areas. The company’s transformation program delivered £312 million in annualized savings during the half, bringing the cumulative total to £1.7 billion. Net debt increased to £21.0 billion, largely due to scheduled pension contributions and dividend payments, but the gross IAS 19 pension deficit decreased to £3.2 billion following substantial contributions.

Looking ahead, BT Group has reiterated its full-year guidance, expecting adjusted revenue of £17.1-£17.6 billion and normalized free cash flow of approximately £2.0 billion, excluding the impact of the recently acquired TalkTalk. The company also reaffirmed its mid-term guidance of sustained growth in revenue and EBITDA, underpinned by continued cost transformation and a reduction in capital expenditure, positioning it for enhanced shareholder distributions by the end of the decade.