BT Reports Quarterly Revenue Dip, Maintains Full-Year Guidance Amid Market Pressures
LONDON, February 5 (Reuters) — BT Group Plc, the telecommunications giant behind the EE mobile network and the UK's largest broadband provider, announced a 4% year-on-year drop in quarterly revenue on Tuesday. The results, which met analyst forecasts, were attributed to ongoing market saturation and inflationary cost pressures. Nevertheless, CEO Allison Kirkby stated the group remains "firmly on track" to deliver on its full-year cash flow and earnings guidance, citing disciplined cost management and steady progress in its nationwide fibre rollout.
The company's performance reflects broader challenges in the telecom sector, where operators are balancing heavy infrastructure investments against modest consumer revenue growth. BT highlighted that its Openreach fibre-building division continues to add new premises at pace, a critical long-term strategy to offset declines in its traditional fixed-line and legacy services.
Industry analysts note that while the revenue decline was anticipated, BT's ability to maintain its outlook suggests stabilizing operational trends. The focus now shifts to whether the group can accelerate its transformation and fend off competitive threats from alternative networks and streaming services.
Market Reactions & Expert Commentary
"The numbers are broadly as expected—no surprises, but no fireworks either," said David Chen, a telecoms analyst at Finley Capital. "BT's discipline on costs and its fibre footprint are positives, but the top-line shrinkage underscores how mature this market has become. The real test will be monetizing the new network."
Priya Sharma, a portfolio manager at Horizon Funds, offered a more optimistic take: "We see a company in transition hitting its milestones. The reiterated guidance is a strong signal of internal confidence. In the current climate, that execution certainty is valuable."
A sharper critique came from Marcus Thorne, editor of the industry newsletter Connect Critical: "Another quarter of declining revenue, yet the board insists everything is 'on track.' This is the same script we've heard for years. They're pouring billions into fibre while their core business erodes. Investors should ask when the promised turnaround actually arrives, not just if it's 'on track.'"
(Reporting by Sarah Young; Editing by Kate Holton. Additional reporting and analysis by Reuters Finance.)