BT increases cost savings target to £3bn to help battle soaring inflation

BT said it would save another £500m by the end of 2025, adding it was also taking steps to offset rocketing costs in the current year, including pricing action in its consumer arm and Openreach business.

The firm increased its savings goal as it reported pre-tax profits falling to £831m for the six months to September 30, down from £1.01 billion a year ago, due to depreciation from its network build and as rising costs hit its bottom line.

Philip Jansen, chief executive of BT, said: “Given the current high inflationary environment, including significantly increased energy prices, we need to take additional action on our costs to maintain the cash flow needed to support our network investments. As a result, we are increasing our cost savings target from £2.5bn to £3bn by the end of 2024-25.”

But he insisted the group “remains on the front foot in these turbulent times”.