Results for the half year to 30 September 2026
Summary by AI BETAClose X
BT delivered a strong first half, with further strategic momentum
Results for the half year to 30 September 2026
5 November 2026
|
Allison Kirkby, Chief Executive, commenting on the results, said: “BT delivered a strong first half, with further strategic momentum in a competitive market, resulting in growth in revenue, EBITDA and customer satisfaction. We are building the UK’s digital backbone, connecting and protecting the country like no-one else, while accelerating our transformation as we create a better BT for all of us. “Openreach achieved record full fibre demand, with more than 10 million homes and businesses now connected and take-up reaching 41%. BT and EE have been recognised as the UK’s best broadband and mobile networks, while more households are choosing our mobile and TV services together. And our growing order book in Business is supported by leadership in secure and sovereign connectivity solutions. “Our UK-centric strategy and transformation is clearly delivering with £312 million of annualised savings achieved in the first half, as we continue to simplify and modernise. Our proposed international joint venture with Verizon is progressing at pace, and we’ve also stepped up for the country with the acquisition of TalkTalk, protecting millions of customers while creating value for all our stakeholders. We are reiterating our mid-term guidance, including normalised free cash flow of c.£3.0bn by the end of the decade. For this fiscal year, we are on track to deliver normalised free cash flow of c.£2.0bn, excluding the effects of the TalkTalk transaction. We’re also announcing an increased interim dividend to 2.5 pence per share.” |
Consistently delivering against our strategic priorities in competitive markets
– Record customer demand for Openreach FTTP with over 1.1m net adds in H1; total premises connected 9.9m, now >50% of broadband and bringing our market-leading take-up rate to 41%; more than 10m connections reached in October; Openreach broadband ARPU of £17.8 grew 7% year on year, driven by CPI-linked price increases, higher FTTP take-up and speed mix
– FTTP footprint increased to 24.1m, with 1.2m premises passed in the six-month period; we now expect to reach our 25m build target in March
– Openreach broadband line losses were 175k in Q2 and 366k in the six-month period; we continue to expect losses of c.800k in the year
– BT and EE network leadership recognised with historic double awards, with RootMetrics recognising EE as the UK's Best Mobile Network for the 13th consecutive year, and Ookla recognising BT's Full Fibre network as the best in the UK; 5G+ population coverage rose to 81%, up from 73% in March
– Record retail FTTP base growth in H1 with Consumer up 574k to 4.7m and Business up 40k to 0.4m, taking FTTP to 54% of the broadband base
– Consumer customer base up 86k in postpaid mobile and 26k in TV, down 7k in broadband; churn remains stable year on year
– Consumer ARPU of £40.8 in broadband, down 3% year on year, reflecting lower voice revenue and a competitive market; £19.8 in postpaid mobile, up 3% year on year; Consumer fixed and mobile convergence increased to 27.1% from 25.9% a year ago
– Business momentum built through the period, with strong sales order growth including contracts with the Ministry of Justice, the Cabinet Office, Scottish Water and Royal Mail; Microsoft partnership deepened in security; brand consideration is building following our BT brand relaunch
– Transformation programme remains on track to deliver £3.5bn of gross annualised cost savings by FY30 on a continuing operations basis; in the six-month period £312m of savings were delivered taking cumulative total savings to £1.7bn at a cost to achieve of £0.8bn; operational efficiencies continued to improve year on year, with network energy usage down 7%, total labour resource down 11% to 90k, and Openreach repair volumes down 16%
– BT Group NPS improved to 33.4, up 5.6pts year on year, rebased for the exclusion of International; customer satisfaction increased across all retail brands, with the BT brand at its highest level in four years
– Improved International EBITDA1 and cash flow; on track to complete joint venture with Verizon in the second half of calendar 2027
– Acquired TalkTalk out of administration on 5 October, protecting service continuity for 2.5m UK customers; awaiting conclusion of regulatory review
Financial performance on track; full year guidance reconfirmed
Following the announcement in June of our agreement with Verizon to create a combined global business, the International CFU is now reported as a discontinued operation. The below metrics are reported on a continuing basis.
– Revenue £8.8bn, up 1%, driven by higher handset revenues in Consumer, partially offset by declines in adjusted service revenue
– Adjusted service revenue2 £7.7bn, down 1%, driven by a continued drag from voice of 1 percentage point
– Adjusted2 EBITDA £4.1bn, up 1% year on year, driven by lower staff costs and wider cost transformation benefits, more than offsetting the voice decline
– Reported profit before tax £1.1bn, up 12%, driven by lower restructuring costs and EBITDA flow through
– Capital expenditure2 £2.3bn, down 5%, reflecting lower build activity
- On a like-for-like basis, excluding FY26 divestments.
- Glossary on page 30
– Cash generated from continuing operations £2.6bn, down 10%; normalised free cash flow1 £0.2bn, down 59% reflecting a higher cash outflow from working capital and working capital programmes
– Net debt £21.0bn (31 March 2026: £20.0bn), the increase was driven by scheduled pension contributions and full-year dividend payment, partially offset by cash generated from trading activities
– Gross IAS 19 pension deficit of £3.2bn, a decrease from £4.2bn at 31 March 2026, predominantly as a result of the payment of scheduled contributions over the period
– Triennial pension agreement reached, the BT Pension Scheme's (BTPS) funding position continues to improve, with the deficit reducing to £2.7bn at June 2026; scheduled contributions will be substantially replaced with zero-coupon bonds to be issued shortly; BT will provide additional funding of £0.3bn net present value to ensure the BTPS remains on track to be fully funded by 2030; measures will substantially reduce the funding deficit to around £0.3bn; wider package agreed, including enhanced dividend headroom; see separate release for full details
– Interim dividend of 2.50 pence per share (pps), up 2% from 2.45pps in H1 FY26 in line with our policy of paying 30% of the prior year's full-year dividend
– FY27 outlook reconfirmed: Adjusted1 revenue £17.1-£17.6bn, adjusted service revenue1 of £15.1-£15.4bn and adjusted1 EBITDA growth to within the range of £8.1-£8.2bn; capital expenditure1 excluding spectrum of £4.2-£4.3bn; normalised free cash flow1 c.£2.0bn. Our FY27 outlook excludes the impact of the TalkTalk acquisition; BT will provide further details on the effects of the acquisition on revenue, EBITDA and capital expenditure following alignment of TalkTalk’s financial reporting to BT’s accounting policies and completion of acquisition accounting later this fiscal year
– Mid-term guidance reconfirmed: Sustained growth in adjusted1 revenue and adjusted service revenue1, sustained growth in adjusted1 EBITDA ahead of 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
Results for the half year to 30 September
|
Half year to 30 September |
2026 |
2025 |
Change |
|
Reported measures on a continuing basis |
£m |
£m |
% |
|
Revenue |
8,753 |
8,700 |
1 |
|
Profit before tax |
1,071 |
956 |
12 |
|
Profit after tax |
835 |
734 |
14 |
|
Basic earnings per share |
8.5p |
7.5p |
13 |
|
Cash generated from continuing operations |
2,567 |
2,868 |
(10) |
|
Capital expenditure1,2 |
2,282 |
2,390 |
(5) |
|
|
|
|
|
|
Adjusted measures on a continuing basis |
£m |
£m |
% |
|
Adjusted1 revenue |
8,750 |
8,696 |
1 |
|
Adjusted service revenue1 |
7,685 |
7,726 |
(1) |
|
Adjusted1 EBITDA |
4,097 |
4,060 |
1 |
|
Adjusted1 basic earnings per share |
9.7p |
9.6p |
1 |
|
Normalised free cash flow1 |
236 |
569 |
(59) |
|
Net debt1 (as at 30 September 2026 and 31 March 2026) |
21,006 |
19,966 |
5 |
|
|
|
|
|
|
Group reported measures (including discontinued operations) |
|
|
|
|
Profit after tax |
809 |
651 |
24 |
|
Basic earnings per share |
8.2p |
6.7p |
22 |
|
Half year dividend |
2.50p |
2.45p |
2 |
Customer-facing unit updates
Results for the half year to 30 September
|
|
Adjusted1 revenue |
Adjusted service revenue1 | ||||
|
Half year to 30 September |
2026 |
2025 re-presented3 |
Change |
2026 |
2025 re-presented3 |
Change |
|
£m |
£m |
% |
£m |
£m |
% | |
|
Consumer |
4,783 |
4,684 |
2 |
3,939 |
3,932 |
— |
|
Business |
2,574 |
2,589 |
(1) |
2,348 |
2,370 |
(1) |
|
Openreach |
3,160 |
3,131 |
1 |
3,160 |
3,131 |
1 |
|
Other |
6 |
6 |
n/m |
6 |
5 |
n/m |
|
Intra-group items |
(1,773) |
(1,714) |
(3) |
(1,768) |
(1,712) |
(3) |
|
Total continuing operations |
8,750 |
8,696 |
1 |
7,685 |
7,726 |
(1) |
|
|
|
|
|
|
|
|
|
|
Adjusted1 EBITDA |
Normalised free cash flow1 | ||||
|
Half year to 30 September |
2026 |
2025 re-presented3 |
Change |
2026 |
2025 re-presented3 |
Change |
|
£m |
£m |
% |
£m |
£m |
% | |
|
Consumer |
1,255 |
1,274 |
(1) |
394 |
540 |
(27) |
|
Business |
601 |
647 |
(7) |
(25) |
164 |
(115) |
|
Openreach |
2,238 |
2,148 |
4 |
247 |
296 |
(17) |
|
Other |
3 |
(9) |
n/m |
(380) |
(431) |
12 |
|
Total continuing operations |
4,097 |
4,060 |
1 |
236 |
569 |
(59) |
- See Glossary on page 30
- Includes spectrum investment of £1m in H1 FY26
- H1 FY26 comparative information is re‑presented on a continuing basis following announcement of our agreement with Verizon to create a combined global business. See note 13 'Discontinued operations and assets and liabilities classified as held for sale' for further information
Results for the second quarter to 30 September
|
|
Adjusted1 revenue |
Adjusted service revenue1 |
Adjusted1 EBITDA | ||||||
|
Second quarter to 30 September |
2026 |
2025 re-presented2 |
Change |
2026 |
2025 re-presented2 |
Change |
2026 |
2025 re-presented2 |
Change |
|
£m |
£m |
% |
£m |
£m |
% |
£m |
£m |
% | |
|
Consumer |
2,452 |
2,352 |
4 |
1,981 |
1,970 |
1 |
639 |
638 |
— |
|
Business |
1,281 |
1,302 |
(2) |
1,162 |
1,187 |
(2) |
299 |
324 |
(8) |
|
Openreach |
1,585 |
1,565 |
1 |
1,585 |
1,565 |
1 |
1,145 |
1,080 |
6 |
|
Other |
2 |
3 |
n/m |
2 |
3 |
n/m |
1 |
(11) |
n/m |
|
Intra-group |
(892) |
(863) |
(3) |
(888) |
(862) |
(3) |
— |
— |
— |
|
Total continuing operations |
4,428 |
4,359 |
2 |
3,842 |
3,863 |
(1) |
2,084 |
2,031 |
3 |
Discontinued operations
Following the announcement in June of our agreement with Verizon to create a combined global business, the International CFU is now reported as a discontinued operation. Throughout this interim announcement, comparative financial information for the half year to 30 September 2025 ('H1 FY26') has been re-presented to reflect the recognition of International as a discontinued operation. International adjusted revenue was £923m (H1 FY26: £1,110m; including £150m of revenue generated in H1 FY26 by the five businesses divested during FY26) and adjusted EBITDA was £60m (H1 FY26: £66m; including £30m of EBITDA generated in H1 FY26 by the five businesses divested during FY26).
- See Glossary on page 30
- H1 FY26 comparative information is re‑presented on a continuing basis following announcement of our agreement with Verizon to create a combined global business. See note 13 'Discontinued operations and assets and liabilities classified as held for sale' for further information
Overview of the half year to 30 September 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. During H1 FY27 we made significant progress against our strategy.
Build
– The best FTTP everywhere in the UK. 10m full fibre connections; record H1 net adds of 1.1m; 25m build target in March
– The best, most resilient mobile network. 5G+ population coverage now at 81%, up from 73% in March
– The best network that differentiates us from competition. BT and EE win historic double broadband and mobile awards
– Leadership in network innovation for the country. Launched the UK's first commercial 5G+ network slicing service for consumers and businesses
Connect
– The most loved and trusted brands. Behind Brilliant Things brand relaunch of BT, supported by new mobile, TV and security products; Plusnet brand refreshed in October
– The best connectivity products for life and work. Launches include AI Receptionist and Mission Boost in Business, EE One Up in Consumer and Fast Lane across both
– The most effortless, personalised experiences. NPS up 5.6pts to 33.4pts, improving across all retail brands
– The best partners for solutions beyond connectivity. Launched new cybersecurity proposition with Microsoft; first non-US partner for Anthropic's Project Glasswing; only EE offers iPhone Handoff
Accelerate
– One team with a customer-first delivery culture. Colleague engagement continues to improve, reaching its highest level since 2023
– A radically simpler portfolio, products and platforms. Preparation continues for International JV with Verizon; transformation accelerating, legacy units down 69%1, TLR down 11%
– IT, enabled by data and AI, as a real competitive advantage. Scaled AI adoption and upskilling; AI Ops programme to enhance customer experience via ServiceNow platform
– Trusted leader for digital inclusion, resilience and sustainability. Acquired TalkTalk, protecting service continuity for 2.5m customers; awaiting conclusion of regulatory review
FY27 outlook and mid-term guidance reiterated
– In FY27 we expect adjusted2 revenue of £17.1-17.6bn and adjusted service revenue2 of between £15.1-£15.4bn which includes a c.£150-200m headwind from voice as we move towards PSTN switchover, with adjusted2 EBITDA growth to within the range of £8.1-£8.2bn. Capital expenditure2 excluding spectrum is expected to be £4.2-£4.3bn, with normalised free cash flow2 of c.£2.0bn. Our FY27 outlook excludes the impact of the TalkTalk acquisition; BT will provide further details on the effects of the acquisition on revenue, EBITDA and capital expenditure following alignment of TalkTalk’s financial reporting to BT’s accounting policies and completion of acquisition accounting later this fiscal year
– In the mid-term, over FY28-FY30, we expect sustained growth in adjusted2 group revenue and adjusted service revenue2 as the voice drag abates, and sustained growth in adjusted2 EBITDA ahead of service revenue, enhanced by cost transformation. By the end of the decade capital expenditure2 excluding spectrum will reduce by more than £1bn from the FY26 level and we expect to deliver c.£3.0bn in normalised free cash flow2
– The transformation programme has been re-presented for continuing operations, targeting gross annualised cost savings of £3.5bn at a cost to achieve of £1.2bn, compared with £3.7bn and £1.4bn respectively including International; FY30 headcount target now 65–70k, excluding International
Dividend
– In line with our policy, we are today declaring an interim dividend of 2.50 pence per share (pps) (H1 FY26: 2.45pps), which is 30% of last year's full dividend
– We reconfirm our 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
– 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 interim dividend will be paid on 10 February 2027 to shareholders on the register of members on 29 December 2026. The ex-dividend date will be 24 December 2026
|
|
FY27 outlook3 |
Mid-term guidance |
|
Adjusted2 group revenue |
£17.1-£17.6bn |
Sustained growth |
|
Adjusted service revenue2 |
£15.1-£15.4bn |
Sustained growth |
|
Adjusted2 EBITDA |
Growth, £8.1-£8.2bn |
Sustained growth ahead of service revenue, enhanced by cost transformation |
|
Capital expenditure2 excluding spectrum |
£4.2-£4.3bn |
Reduces by >£1bn from FY26 level |
|
Normalised free cash flow2 |
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 |
- Includes International units
- See Glossary on page 30
- Excluding the impact of the TalkTalk acquisition
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