BT profits surge due to price increases as ultrafast broadband rollout continues

01 February 2024 , 08:44

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BT has seen an increase in profits thanks to price increases (Image: PA Wire/PA Images)

Allison Kirkby, the new boss of telecoms giant BT, announced that the company is "on track" following a surge in profit thanks to price increases.

Kirkby, who succeeded former chief executive Philip Jansen, made history as the first woman to lead the FTSE 100 firm. Settling into her role during a significant time for BT, with the roll-out of ultrafast broadband across the UK and a major cost-cutting scheme underway, she expressed excitement about guiding the company through its "next phase of development".

Figures show that adjusted revenues rose by 3% to £15.8 billion across the final three months of last year, something the firm attributed to price hikes and the sale of fibre products by Openreach, its business unit. Boosts from increased roaming and further price rises in its business division helped balance out some declines in "legacy products".

Consequently, adjusted earnings soared by 3% to £6.1 billion over the quarter, as improvements in costs counterbalanced inflation, while pre-tax profits jumped 15% to £1.5 billion. Ms Kirkby stated: "BT Group has delivered another quarter of revenue and ebitda (earnings before tax, interest, depreciation and amortisation) 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." She added, "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."

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Lawrence Matheson