The telco giant raised its full fibre build target by 20% for FY26 and reiterated confidence in hitting its target of £3 billion free cash flow by the end of the decade, but flatlining consumer and business units highlight the slow but eventual path to transformation.
Overall revenue declined by 2%, which BT blamed on international drag and handset sales, but its UK service revenue was also down by 1%.
Chief executive Allison Kirkby said the results showed “strong progress” against its strategic priorities.
“Although revenue declined year-on-year driven mainly by lower international sales and handsets, strong cost control and a step-up in focus and transformation resulted in growth in both EBITDA and normalised free cash flow, allowing us to increase our dividend for FY25 by 2% to 8.16p per share,” Kirby said.
BT’s Business segment continued to prove a weak spot, with revenue down 4% and EBITDA down 6%, dragged by declining legacy products and further contraction in overseas operations.
The results come as recent reports suggest BT plans to launch a standalone international business unit, operating separately from the telecom giant’s UK operations.
Overall net debt, meanwhile, climbed to £19.8 billion, largely due to scheduled pension payments.
Openreach saw broadband line losses accelerate, down 243,000 in Q4, as the group continues to cede ground to Virgin Media O2 and a growing cohort of alternative network providers.
BT said it expects line losses at Openreach to continue at a similar pace throughout FY26.
Although full fibre take-up helped soften the blow, the figures underscore the intensity of competition in the UK market.
It wasn’t all gloom on the fibre side, however, as retail FTTP connections rose by a third to 3.4 million, contributing to a take-up rate of 36% across Openreach’s full fibre footprint.
Despite the mixed performance, Kirkby struck an optimistic tone: “As we build and connect at pace, our transformation will accelerate and deliver a better BT for all of us — our customers, our colleagues, the country and our owners.”
The group also reported £913 million in annualised cost savings, some 30% of its five-year £3 billion target, achieved a year ahead of schedule.
Kirkby has led a campaign of cost-cutting and streamlining as BT shifts focus to its core UK market.
A string of divestments has helped raise funds, including the sale of its Irish data centre business, Irish wholesale and enterprise arm, and its Italian operations.
BT also sold its stake in the startup Distributed, cut around 2,000 roles, and most recently announced plans to close its Derry office by the end of 2025.
