Results for the full year to 31 March 2026

BT Group PLC

21 May 2026

 

 

Allison Kirkby, Chief Executive, commenting on the results, said: "FY26 was another year of strong delivery against BT's strategy. We are building the UK's digital backbone even faster and further, connecting the country like no one else and accelerating our transformation - and we know there is much more we can do, as we create a better BT for all of us.  "Our record-breaking Openreach full fibre build hit its upgraded target and today reaches more than two thirds of UK homes and businesses, keeping us well on track for our 25 million milestone by the end of December. We extended our mobile leadership further, with EE winning best mobile network in three separate awards, bringing 5G+ to 73% of the population.  "Customer satisfaction reached a new high, with increased demand for our next-generation products and networks. Openreach achieved record full fibre connections and reduced line losses. And by using all our brands - BT, EE and Plusnet - our Consumer division returned to customer growth across broadband, mobile and TV. Our Business division has secured significant customer wins as its transformation progresses - and we've completed five targeted non-core disposals as we reshape BT International.  "We have delivered on our financial guidance and we are transforming ahead of plan, offsetting headwinds while successfully competing. Today we're announcing an increased full year dividend of 8.32 pence per share and an updated dividend policy, and we are reiterating our guidance of sustained growth, including cash flow inflection to c. £2.0bn in FY27 and to c. £3.0bn by the end of the decade."

Consistently delivering against our strategic priorities in competitive markets

-  Record FTTP build of 4.8m premises passed in the year, achieving the accelerated target set last year, the fastest build in Europe; FTTP footprint at 23m premises, more than two thirds of all UK premises, of which 6.3m in rural locations; on track to reach our target of 25m by December 2026

-  Record customer demand for Openreach FTTP with 2.2m net adds in the year; total premises connected total 8.8m, bringing our market-leading take-up rate amongst all major fibre providers to over 38%; Openreach broadband ARPU in the year grew by 4% to £16.7, driven by higher FTTP take-up, speed mix and price increases

-  Openreach broadband line losses were 203k in Q4, giving full year losses of 825k, slightly better than our c. 850k guidance, supported by our expanded and accelerated build; we expect losses of c. 800k in FY27                                

-  EE remains the UK's best mobile network, evidenced by independent industry assessments, including Umlaut, Opensignal and RootMetrics; 5G+ population coverage increased to 73% from 43% last year

-  Retail FTTP base grew by 31% year-on-year to 4.5m, of which Consumer 4.2m and Business 0.3m; 5G base reached 14.5m, up 10% year-on-year; BT brand reintroduced with new products across Consumer and Business segments during May 2026

-  Consumer customer base growth up 26k in broadband, 104k in postpaid mobile and 72k in TV, with stable to falling churn

-  Consumer ARPU down 1% to £41.7 in broadband and down 1% to £19.3 in postpaid mobile year-on-year in a competitive market; Consumer fixed and mobile convergence¹ increased to 26.6% from 24.6% last year

-  Business achieved significant new connectivity & security wins including BAE Systems, NIE Networks and easyJet, and is partnering with Nscale to deliver sovereign AI data centres in the UK

-  International refocused following completion of five planned divestments with ongoing rationalisation of footprint, products, overseas network and IT estate

-  Transformation delivering ahead of plan, realising cost savings while improving customer journeys; £580m gross annualised cost savings achieved during FY26 at a cost to achieve of £336m, taking total savings over two years to £1.5bn at costs of £0.8bn; we realised year-on-year reductions in energy usage in our networks of 6%, in total labour resource of 7% to 108k and in Openreach repair volumes of 18%

-  Overall transformation plan target raised to £3.7bn from £3.0bn and extending the programme by one year to FY30, at a cost to achieve of £1.4bn from £1.0bn

-  Record BT Group NPS of 33.4, up 4.1pts year-on-year; customer satisfaction up across all brands

1  See Glossary on page 11

Solid financial performance against outlook, dividend raised; reiterating NFCF¹ to increase to £2bn in FY27 and £3bn by FY30

-  Reported revenue £19.7bn down 3% and adjusted¹ revenue £19.6bn, down 4%, driven by lower International revenue including divestments, declines in handset trading and declines in adjusted UK service revenue

-  Adjusted UK service revenue¹ £15.4bn, down 1%, mainly driven by lower voice volumes in Business and Consumer, offset by CPI-linked price increases and an improved broadband FTTP mix in Openreach

-  Adjusted¹ EBITDA £8.2bn, flat year-on-year, with lower revenue offset by strong cost transformation and cost control; excluding divestments, like-for-like adjusted EBITDA was up 1%

-  Reported profit before tax £1.4bn, up 8%, with the increase primarily driven by lower specific items, lower depreciation and amortisation, offset by a higher finance expense

-  Capital expenditure¹ £5.1bn, up 6%, reflecting higher FTTP provisioning and build activity

-  Net cash inflow from operating activities £7.0bn, up 1%; normalised free cash flow¹ £1.5bn, down 6% due to higher cash capital expenditure, interest costs, the absence of a prior year tax refund and working capital movements, partly offset by working capital programmes

-  Net debt £20.0bn (31 March 2025: £19.8bn), broadly stable year‑on‑year

-  Gross IAS 19 pension deficit of £4.2bn, an increase from £4.1bn at 31 March 2025, reflecting updated views on mortality and inflation, and lower asset returns than expected, partly offset by scheduled contributions

-  Final dividend of 5.87 pence per share (pps) up 2% from 5.76pps, bringing the full year dividend to 8.32pps

-  Updated dividend policy to grow the dividend by low to mid single digit percent per annum in FY27 and onwards until metrics consistent with a BBB+ credit rating are reached; thereafter residual cash flow will be available for enhanced distributions to shareholders

-  FY27 outlook: Adjusted¹ revenue £19.0-19.5bn, adjusted UK service revenue¹ of £15.1-£15.4bn and adjusted¹ EBITDA growth within the range of £8.2-8.3bn; capital expenditure¹ excluding spectrum c. £4.3bn; normalised free cash flow¹ c. £2.0bn

-  Mid-term guidance: Sustained growth in adjusted¹ revenue and adjusted UK service revenue¹, sustained growth in adjusted¹ EBITDA ahead of UK service revenue, enhanced by cost transformation; capital expenditure¹ excluding spectrum reducing by more than £1bn from the FY26 level; normalised free cash flow¹ of c. £3.0bn by the end of the decade

Full year to 31 March	2026	2025	Change
Reported measures	£m	£m	%
Revenue	19,654	20,358	(3)
Profit before tax	1,436	1,334	8
Profit after tax	1,077	1,054	2
Basic earnings per share	11.0p	10.8p	2
Net cash inflow from operating activities	7,030	6,989	1
Full year dividend	8.32p	8.16p	2
Capital expenditure1,2	5,127	4,857	6
Adjusted measures	£m	£m	%
Adjusted1 revenue	19,646	20,370	(4)
Adjusted UK service revenue1	15,445	15,568	(1)
Adjusted1 EBITDA	8,230	8,209	-
Adjusted1 basic earnings per share	18.3p	18.8p	(3)
Normalised free cash flow1	1,508	1,598	(6)
Capital expenditure1 excluding spectrum	5,114	4,857	5
Net debt1	19,966	19,816	1

1  See Glossary on page 11

2  Includes spectrum investment of £13m

Customer-facing unit updates

	Adjusted1 revenue			Adjusted UK service revenue1
Full year to 31 March	2026	2025 re-presented2	Change	2026	2025 re-presented2	Change
	£m	£m	%	£m	£m	%
Consumer	9,494	9,695	(2)	7,853	7,888	-
Business	5,257	5,348	(2)	4,803	4,847	(1)
International	2,114	2,499	(15)	-	-	-
Openreach	6,190	6,156	1	6,190	6,156	1
Other	13	12	n/m	12	12	n/m
Intra-group items	(3,422)	(3,340)	2	(3,413)	(3,335)	2
Total	19,646	20,370	(4)	15,445	15,568	(1)
	Adjusted1 EBITDA			Normalised free cash flow1
Full year to 31 March	2026	2025 re-presented2	Change	2026	2025 re-presented2	Change
	£m	£m	%	£m	£m	%
Consumer	2,602	2,644	(2)	1,273	1,025	24
Business	1,266	1,331	(5)	530	540	(2)
International	145	205	(29)	(117)	(34)	(244)
Openreach	4,225	4,029	5	792	839	(6)
Other	(8)	-	n/m	(970)	(772)	n/m
Total	8,230	8,209	-	1,508	1,598	(6)

	Adjusted1 revenue			Adjusted UK service revenue1			Adjusted1 EBITDA
Fourth quarter to 31 March	2026	2025 re-presented2	Change	2026	2025 re-presented2	Change	2026	2025 re-presented2	Change
	£m	£m	%	£m	£m	%	£m	£m	%
Consumer	2,342	2,361	(1)	1,958	1,928	2	678	659	3
Business	1,371	1,327	3	1,254	1,219	3	302	320	(6)
International	482	672	(28)	-	-	-	29	60	(52)
Openreach	1,519	1,505	1	1,519	1,505	1	1,025	942	9
Other	3	2	n/m	3	2	n/m	(8)	(7)	n/m
Intra-group	(853)	(818)	4	(850)	(818)	4	-	-	-
Total	4,864	5,049	(4)	3,884	3,836	1	2,026	1,974	3

Performance against FY26 outlook

	FY26 outlook	FY26 performance
Adjusted1 revenue	c. £20bn	£19.65bn
Adjusted UK service revenue1	£15.3-£15.6bn	£15.45bn
Adjusted1 EBITDA	£8.2-£8.3bn	£8.23bn
Capital expenditure1 excluding spectrum	c. £5.0bn	£5.11bn
Normalised free cash flow1	c. £1.5bn	£1.51bn

Prior period comparatives

Throughout this release, comparative financial information for the full year to 31 March 2025 ('FY25') has been re-presented to reflect the formation of the new International CFU and re-presentations of segmental revenue to reflect the nature of services and trading relationships between CFUs. Note 16 on page 29 and Additional Information on page 33 presents a bridge between financial information for the full year to 31 March 2025 as published on 22 May 2025, and the comparatives presented in this release. For further information see bt.com/about for a separate publication covering the formation of International.

1  See Glossary on page 11

2  FY25 comparative information for the Business CFU has been re-presented to reflect the formation of the new International CFU and re-presentations of segmental revenue to reflect the nature of services and trading relationships between CFUs. Note 16 on page 29 presents a bridge between financial information for the full year to 31 March 2025 as published on 22 May 2025, and the comparatives presented in this release.

Overview of the full year to 31 March 2026

Progress against our strategic priorities

Our ambition is to be the UK's most trusted connector of people, business and society. We will do this by building the best, most trusted digital networks, by connecting customers so they thrive as we grow in a digital world, and by accelerating our modernisation to restore leadership in everything we do.

We made significant progress against our strategy in FY26. Highlights include:

Build

-  The best FTTP everywhere in the UK. Reaching over two-thirds of the UK and on track for 25m premises by December 2026

-  The best, most resilient mobile network. 5G+ population coverage now at 73%, up from 43%

-  The best network that differentiates us from competition. Triple quality award wins, reinforcing network performance quality

-  Leadership in network innovation for the country. First to provide end-to-end sovereign offering for the UK

Connect

-  The most loved and trusted brands. Consumer customer base growth across mobile, broadband and TV

-  The best connectivity products for life and work. Leadership in safety, security and protection; Business wins with BAE Systems, NIE Networks, and easyJet; partnerships with Nscale and CrowdStrike

-  The most effortless, personalised experiences. Record Group NPS of 33.4pts, improving across all brands

-  The best partners for solutions beyond connectivity. Cisco Partner of the Year; Strong partnerships with Apple, Samsung, Google, Microsoft and others

Accelerate

-  One team with a customer-first delivery culture. Employee engagement above UK benchmarks and remains strong

-  A radically simpler portfolio, products and platforms. Transformation ahead of plan with £1.5bn savings delivered at a cost to achieve of £0.8bn since launch; overall transformation plan extended by one year to FY30 and target raised to £3.7bn

-  IT, enabled by data and AI, as a real competitive advantage. Customer journey simplification, with developing AI initiatives, delivering reduced cost to serve

-  Trusted leader for digital inclusion, resilience and sustainability. We've reached 23.3 million people with digital skills help since 2015

Financial outlook

-  We remain well-positioned to deliver a strong increase in cash flow and value through delivery of our UK-focused strategy

-  In FY27 we expect adjusted¹ revenue of £19.0-19.5bn and adjusted UK service revenue¹ of between £15.1bn and £15.4bn which includes a c. £150-200m headwind from voice as we move towards PSTN closure, with adjusted¹ EBITDA growth to within the range of £8.2-£8.3bn. Capital expenditure¹ excluding spectrum is expected to be around £4.3bn, with normalised free cash flow¹ of £2.0bn

-  In the mid-term, from FY28-FY30, we expect sustained growth in adjusted¹ group revenue and adjusted UK service revenue¹ as the voice drag abates, and sustained growth in adjusted¹ EBITDA ahead of UK service revenue, enhanced by cost transformation. By the end of the decade capital expenditure¹ excluding spectrum will reduce by more than £1bn from the FY26 level and we expect to deliver c. £3.0bn in normalised free cash flow¹

Dividend

-  We are today declaring a final dividend of 5.87 pence per share (pps), increasing our full year dividend to 8.32pps, a year-on-year increase of 2% (FY25: 8.16pps)

-  The Board has adopted a new policy to grow the dividend by low to mid single digit percent per annum in FY27 and onwards until metrics consistent with a BBB+ credit rating are reached; thereafter residual cash flow will be available for enhanced distributions to shareholders

-  The Board expects to continue to declare two dividends per year with the interim dividend being fixed at 30% of the prior year's full year dividend

-  The dividend will be paid on 9 September 2026 to shareholders on the register of members on 7 August 2026. The ex-dividend date will be 6 August 2026

	FY27 outlook	Mid-term guidance
Adjusted1 group revenue	£19.0-£19.5bn	Sustained growth
Adjusted UK service revenue1	£15.1-£15.4bn	Sustained growth
Adjusted1 EBITDA	Growth, £8.2-£8.3bn	Sustained growth ahead of UK service revenue, enhanced by cost transformation
Capital expenditure1 excluding spectrum	c. £4.3bn	Reduces by >£1bn from FY26 level
Normalised free cash flow1	c. £2.0bn	c. £3.0bn by end of decade
Dividend	Low to mid-single digit growth	Low to mid-single digit growth until metrics consistent with BBB+ are reached; thereafter residual cash flow will be available for enhanced distributions

1  See Glossary on page 11.

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/1737F_1-2026-5-20.pdf

 

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