BT Group Share Price Rallied 7.61% on Upbeat H1 FY’24 Profits

The BT Group – CLASS A Common Stock (LON: BT.A) share price rallied 7.61% after releasing its half-year results for the six months ended 30 September 2023. The company reported revenues worth £10.4 billion, aligning with the prior year's performance. However, the adjusted revenue, which considers specific factors, surged by 3% on a pro forma basis.

The British multinational telecommunications holding company also noted that increased sales of fibre-enabled products, inflation-linked pricing adjustments, and improved performance in lower-margin business segments primarily drove growth. Declines in legacy product sales partially counterbalanced these positive factors.

The company’s adjusted EBITDA reached £4.1 billion, marking a 6% increase, and when analysed on a pro forma basis, the figure still saw a commendable 4% growth. The growth was attributed to the effective revenue flow-through and robust cost-control measures, which more than compensated for cost inflation and any one-off items that affected last year's figures.

Bt Group’s reported profit before tax rose to £1.1 billion, registering a remarkable 29% increase, mainly attributable to the factors that drove the growth of adjusted EBITDA. This indicates the overall health and profitability of the organisation.

Reported capital expenditure (capex) decreased by 11% to £2.3 billion, primarily driven by lower costs in the fixed network sector resulting from reduced FTTP (Fiber-to-the-Premises) build unit expenses. 

The net cash inflow from operating activities amounted to £2.3 billion. Normalised free cash flow demonstrated notable growth, increasing by £0.4 billion. This was primarily a result of a £0.2 billion boost in adjusted EBITDA and a £0.3 billion decrease in cash capital expenditure.

Philip Jansen will hand over the CEO role to Alison Kirby early next year. 

Philip Jansen, BT Group’s CEO, said: “These results show that BT Group is delivering and on target: we're rapidly building and connecting customers to our next-generation networks, we're simplifying our products and services, and we're now seeing predictable and consistent revenue and EBITDA growth. We've strengthened our competitive position with the launch of both New EE and our renewed strategy in Business, and Openreach has now built full-fibre broadband to more than a third of the UK's homes and businesses with a growing connection rate. Our transformation programme has now delivered £2.5bn in annualised savings, well on track to meet our £3bn savings target by FY25.”

BT Group (BT.A) share price. 

BT Group's share price rallied 7.61% to trade at 119.56p from Wednesday’s closing price of 111.10p.