BT’s half-year results show a network business advancing while its older revenue streams contract. Openreach fibre and EE 5G adoption improved substantially, yet legacy voice, weaker handset trading and International declines pulled group revenue lower. Cost savings held adjusted EBITDA steady, but higher depreciation, amortisation and financing costs reduced statutory profit. Management therefore kept its FY26 targets unchanged, presenting the figures as an expected transition rather than a guidance reset.
BT’s headline results for the six months to 30 September 2025
BT Group published its results on 6 November 2025. The main figures were:
| Measure | H1 FY26 result | Year-on-year change | What it indicates |
|---|---|---|---|
| Reported and adjusted group revenue | £9.8bn | Down 3% | Declines in legacy and lower-growth activities outweighed growth in newer services. |
| Adjusted UK service revenue | £7.7bn | Down 1% | Underlying UK service performance was more resilient than total group revenue. |
| Adjusted EBITDA | £4.1bn | Flat | Transformation savings and cost control offset revenue pressure and higher employment costs. |
| Reported profit before tax | £862m | Down 11% | Higher depreciation and amortisation, plus increased net finance expense, reduced statutory profit. |
| Capital expenditure | £2.4bn | Up 8% | BT continued investing heavily in fibre and mobile networks. |
| Interim dividend per share | 2.45 pence | Up from 2.40 pence | The interim distribution increased 2%. |
Why revenue fell despite stronger fibre and 5G adoption
Legacy voice is shrinking
Traditional voice services are in structural decline as customers move to mobile, messaging and internet-based calling. That erosion continues even when newer broadband and mobile products gain customers, so the mix shift does not immediately produce equivalent top-line growth.
Handset trading was weaker
BT reported lower mobile handset trading volumes. Handset activity can produce substantial revenue even when margins are comparatively modest; fewer transactions therefore weigh on reported sales independently of the performance of the underlying mobile network.
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International revenue declined
International operations added to the group-level fall. This decline sits outside the direct benefit of Openreach’s UK fibre build and EE’s domestic 5G expansion.
Growth offsets were not yet large enough
Openreach’s improving full-fibre mix and BT’s price increases partly offset those pressures, but not enough to prevent a 3% group revenue decline. The result is a business gaining higher-value connectivity customers while still carrying shrinking legacy activities through the transition.
Network and customer progress
The operational indicators were materially stronger than the revenue line.
- Openreach full fibre reached more than 20 million homes and businesses.
- EE 5G+ coverage reached 66% of the population at the half-year reporting date.
- The 5G customer base reached 13.9 million, up 11% year on year.
- Consumer retail FTTP customers increased by 476,000 to 3.7 million.
- Business retail FTTP customers increased by 44,000 to 0.3 million.
- Consumer fixed/mobile convergence rose to 25.9%, from 23.1% a year earlier.
- BT Group’s net promoter score improved by 5.2 points to 30.5.
These figures show that availability, adoption and customer experience are moving in the intended direction. They do not, by themselves, guarantee immediate revenue growth because customers may be migrating from older BT products, and network investment is incurred before the full benefit of a larger fibre base appears in cash earnings.
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Why adjusted EBITDA was flat while reported profit fell
Adjusted EBITDA remained £4.1bn because savings offset the operating headwinds. BT delivered £247m of gross annualised cost savings in H1 FY26 and said cumulative savings reached £1.2bn during the first 18 months of its £3bn transformation programme. Those savings and broader cost control absorbed revenue pressure and higher employment costs.
Reported profit before tax is measured after charges that EBITDA excludes. BT’s larger asset base generated higher depreciation and amortisation as fibre and other network assets were added. Net finance expense also increased as interest rates rose. Together, those items explain why an unchanged EBITDA result translated into an 11% fall in reported profit before tax.
Investment now, cash-flow improvement later
Capital expenditure rose 8% to £2.4bn in the half year. That spending supports the fibre and mobile build but reduces near-term cash generation. BT’s framework assumes the investment peak passes before the cash-flow benefit becomes fully visible.
The company expects capex excluding spectrum of about £5.0bn for FY26. Its medium-term plan calls for capex to fall by more than £1bn from FY26, while normalised free cash flow rises to about £2.0bn in FY27 and about £3.0bn by the end of the decade. These are management targets, not outcomes delivered in the half-year numbers.
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What BT’s FY26 guidance says
BT reconfirmed its existing FY26 outlook rather than lowering it after the half-year decline:
| FY26 measure | Reconfirmed guidance |
|---|---|
| Adjusted group revenue | About £20bn |
| Adjusted UK service revenue | £15.3bn–£15.6bn |
| Adjusted EBITDA | £8.2bn–£8.3bn |
| Capital expenditure, excluding spectrum | About £5.0bn |
| Normalised free cash flow | About £1.5bn |
BT’s mid-term framework targets sustained adjusted group and UK service-revenue growth from FY27, EBITDA growth ahead of revenue, and the lower capex and higher free-cash-flow profile described above. Reconfirmation means management still considers the first-half performance consistent with that path; it is not evidence that the transition is complete.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read the results as an investor or customer
Network adoption versus legacy decline
Fibre reach, 5G coverage and subscriber growth are leading indicators of future service quality and product mix. Legacy voice and handset declines are current revenue headwinds. The key question is whether the expanding fibre and 5G bases eventually generate enough recurring service revenue to replace the older streams.
Operating resilience versus statutory pressure
Flat EBITDA demonstrates that the operating cost base is adapting, but the lower reported profit shows that depreciation and financing costs remain material. EBITDA should therefore be read alongside profit before tax rather than as a substitute for it.
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Investment intensity versus later cash returns
Higher capex is the price of building the network. The investment case depends on successful customer migration, disciplined costs and the planned reduction in capital spending. Until those conditions occur, stronger infrastructure metrics can coexist with weak or falling reported profits.
Important date context for the 5G and fibre figures
The 66% EE 5G+ coverage and more-than-20-million Openreach full-fibre premises figures describe the position at the six months ended 30 September 2025. A later BT update reported 77% 5G+ coverage and a target of 25 million full-fibre premises by December 2026, so the half-year coverage figure should not be treated as BT’s current network position.
Bottom line
BT’s H1 FY26 results are a mixed transition story: the fibre and 5G build is attracting customers and improving network reach, while legacy voice, handset and International declines suppress revenue. Savings protected adjusted EBITDA, but depreciation and higher interest costs cut reported profit. With FY26 guidance unchanged, BT is asking investors to judge the strategy on future mix, lower capex and stronger cash flow rather than on near-term revenue growth alone.
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