The BT Group (LON: BT.A) share price spiked 5.66% after issuing a trading update for the nine months ended 31 December 2023. The telecommunications company reported that the rate of FTTP (Fiber to the Premises) construction has risen to 73,000 per week, achieving a new high of 950,000 premises covered in the quarter.
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The FTTP network now reaches 13 million premises, with construction initiated on an additional 6 million. There is robust demand for FTTP from Openreach customers, evidenced by a net addition of 432,000 in Q3, bringing the total number of connected premises to 4.4 million. The uptake rate has climbed to 34%.
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Openreach’s average revenue per user (ARPU) for broadband saw a 10% increase from the previous year, which is attributed to pricing adjustments and a higher volume of FTTP connections. However, there has been a loss of 369,000 broadband lines to date, marking a 2% decrease in the broadband base.
The decline is expected to surpass 400,000 by the end of FY24 due to persistent challenges in the broadband market.
Compared to last year, consumer broadband and postpaid mobile ARPU have risen by 5% and 8%, respectively. Despite a competitive environment, monthly churn rates for broadband and postpaid mobile services remained steady at 1.1% and 1.2%.
The company’s business segment is navigating through increased costs, declines in legacy products, and impacts from one-off events in the previous year. However, these challenges are partly mitigated by cost-saving measures and growth in the Small & Medium Business (SMB) and Security sectors.
Allison Kirkby, BT Group’s CEO, said: “BT Group has delivered another quarter of revenue and EBITDA growth while rapidly building and upgrading customers to our full-fibre broadband and 5G networks, and we continue to be on track to achieve our financial outlook for the year. We are providing great digital connectivity and services while laying the foundations for future growth that will benefit our customers, investors and the UK. As I assume the role of Chief Executive, we remain committed to our purpose and our strategic focus, and I am looking forward to leading BT Group into its next phase of development.”
BT Group share price.
The BT Group share price spiked 5.66% higher to trade at 118.66p from Wednesday’s closing price of 112.30p.
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