BT: Growth delivered
BT grew both revenue and EBITDA in Q2 FY27, handily bolstering its case for sustainable growth in these in the longer term.
Operating highlights included particularly strong mobile net adds and service revenue growth, and Openreach’s broadband losses continuing to wane as altnets slow.
Challenges certainly remain, including the successful integration of TalkTalk, but current performance adds significant confidence to BT’s long term cashflow turnaround targets.
Related reports
BT buys TalkTalk: Taking one for the team
6 October 2026BT is buying TalkTalk as a buyer of last resort, given the chaos that would ensue with a disorderly shut down, and will face a regulatory clearance process that reflects this.
The acquisition will cost BT c.£400 million this financial year, and will be hard to
manage given the ongoing subscriber decline, with limited longer-term upside.
Damage limitation appears to be the main driver.
There is a limited impact on the rest of the market, with some opportunity to pick up
business, limited risk for CityFibre despite it supplying TalkTalk, but less choice for
some types of smaller broadband competitors.
BT: Growth in prospect
30 July 2026BT’s revenue and EBITDA growth suffered a dip in Q1, but entirely due to one-off/seasonal factors, with underlying metrics strong across the board.
Ofcom has curtailed Openreach’s ability to compete with altnets, while allowing it to compete with VMO2, a much more established and long-term competitor.
The deconsolidation of International makes the potential for a return to sustainable revenue growth much more apparent, with multiple drags (altnets, voice, price mechanics) now firmly on the wane.
Broadband market revenue for the ‘big 4’ remains in decline as recovering subscriber trends are countered by worsening ARPU.
While abating altnet pressure should eventually lead to recovery, in the short term we expect revenue growth to worsen as the seasonal effect of annual price rises bites in the June quarter.
The longer-term outlook for the altnet sector is increasingly in regulators’ hands as the CMA decides on nexfibre/Netomnia and Ofcom decides on Openreach’s new special offer discounts
BT: The dividend waiting game
28 May 2026BT hit its FY26 guidance with a particularly strong Q4 financial performance, which was buoyed by a number of one-offs.
Operating metrics were far from spectacular, but the company is outperforming its peers in tough markets, and Openreach’s line losses are on a clear (if potentially bumpy) downwards trend as altnet growth wanes.
Improving cashflows will still take some years to translate into rapid growth in shareholder returns given a conservative dividend policy, but the path is looking increasingly secure.
BT buys TalkTalk: Taking one for the team
6 October 2026BT is buying TalkTalk as a buyer of last resort, given the chaos that would ensue with a disorderly shut down, and will face a regulatory clearance process that reflects this.
The acquisition will cost BT c.£400 million this financial year, and will be hard to
manage given the ongoing subscriber decline, with limited longer-term upside.
Damage limitation appears to be the main driver.There is a limited impact on the rest of the market, with some opportunity to pick up
business, limited risk for CityFibre despite it supplying TalkTalk, but less choice for
some types of smaller broadband competitors.BT: Growth in prospect
30 July 2026BT’s revenue and EBITDA growth suffered a dip in Q1, but entirely due to one-off/seasonal factors, with underlying metrics strong across the board.
Ofcom has curtailed Openreach’s ability to compete with altnets, while allowing it to compete with VMO2, a much more established and long-term competitor.
The deconsolidation of International makes the potential for a return to sustainable revenue growth much more apparent, with multiple drags (altnets, voice, price mechanics) now firmly on the wane.
Broadband market revenue for the ‘big 4’ remains in decline as recovering subscriber trends are countered by worsening ARPU.
While abating altnet pressure should eventually lead to recovery, in the short term we expect revenue growth to worsen as the seasonal effect of annual price rises bites in the June quarter.
The longer-term outlook for the altnet sector is increasingly in regulators’ hands as the CMA decides on nexfibre/Netomnia and Ofcom decides on Openreach’s new special offer discounts
BT: The dividend waiting game
28 May 2026BT hit its FY26 guidance with a particularly strong Q4 financial performance, which was buoyed by a number of one-offs.
Operating metrics were far from spectacular, but the company is outperforming its peers in tough markets, and Openreach’s line losses are on a clear (if potentially bumpy) downwards trend as altnet growth wanes.
Improving cashflows will still take some years to translate into rapid growth in shareholder returns given a conservative dividend policy, but the path is looking increasingly secure.