BT Shares Edge Higher Amid Fibre Expansion and Customer Growth

BT Group (LON: BT.A) saw its shares initially jump over 2% at the open, before moderating to a 0.3% gain, following the release of its trading update for the nine months ending December 31, 2025.

The report highlighted record full fibre connections and continued growth in retail customer numbers, signalling progress in the company's strategic objectives.

The telecoms giant reported that its full fibre broadband network now reaches over 21 million homes and businesses, with 5G+ network access available to 69% of the population.

Openreach, BT's network infrastructure division, achieved record full fibre connections, adding 571,000 customers, a 21% increase year-on-year. The total number of premises connected to Openreach's full fibre network reached 8.2 million, driving the take-up rate to over 38%.

Openreach's broadband ARPU (Average Revenue Per User) grew by 4% to £16.8, driven by increased FTTP adoption, higher speeds, and price adjustments. However, Openreach experienced a decline of 210,000 broadband lines, consistent with the previous year's rate.

The company now anticipates full-year losses of approximately 850,000 lines, an improvement over previous estimates. The retail FTTP base expanded to 4.2 million customers, with Consumer and Business segments accounting for 3.9 million and 0.3 million, respectively.

BT's Consumer division reported growth across all customer bases for the fourth consecutive quarter, with broadband subscriptions up by 8,000, postpaid mobile by 55,000, and TV by 22,000.

Despite this growth, Consumer service revenue remained flat year-on-year, though the company anticipates growth in the second half of the year. Consumer broadband ARPU decreased by 1% to £41.8, while postpaid mobile ARPU also saw a 1% decline to £19.2. Convergence of fixed and mobile services within the Consumer segment grew to 26.2% from 25.9% in the previous quarter.

The Business segment continues its transformation. Q3 performance was impacted by contract milestones, primarily in the financial and public sectors, as well as wholesale, and the phasing of costs across quarters. BT completed all five targeted disposals in its International division, with the final disposal, BT Radianz, closing on February 1st. These disposals reduced International revenue by £45 million during the quarter.

Cost transformation initiatives have yielded efficiencies across all units, offsetting increased employer costs related to the National Living Wage and National Insurance. Year-to-date energy consumption in BT's networks decreased by 6%, total labour resource was reduced by 7% to 108,000, and Openreach repair volumes were down by 18%. BT Group's Net Promoter Score (NPS) reached a record high of 31.4, up 2.1 points year-on-year, indicating improved customer experience.

BT reported adjusted revenue of £5.0 billion for Q3, a 4% decrease year-on-year, attributed to service revenue declines, lower equipment revenue in Consumer and Business, and the impact of divestments.

Adjusted UK service revenue was £3.8 billion, down 2%, due to the ongoing decline in legacy voice services and the phasing of trading in the prior year. Adjusted EBITDA was £2.1 billion, a 1% decrease. Reported profit before tax stood at £183 million, down £244 million, primarily due to a £214 million share of losses from the Sports JV.

Allison Kirkby, Chief Executive, commenting on the results, said: “BT continues to deliver on its strategy – building and connecting the UK to the best next-generation networks at record pace, while accelerating our transformation.”

BT maintains its financial outlook and guidance metrics, including a cash flow inflection to approximately £2.0 billion next year and to around £3.0 billion by the end of the decade.