By Greg Wright

Published 2nd Feb 2023, 08:39 BST

The group saw consumer revenues drop 6 per cent to £2.4bn in the three months to December 31, but underlying earnings in the division lifted 7 per cent to £669m amid recent price rises, a surge in new fibre broadband customers and action to cut costs.

A record 155,000 customers signed up to its full-fibre products in the quarter, according to the group.

Underlying earnings across the wider group lifted 2 per cent to £2bn over the quarter, it added.

Telecoms group BT has reported a 3% drop in its third-quarter revenues as it flagged “tough” market conditions in its consumer-facing business.

BT said its consumer arm put in a “strong performance in tough market conditions”, but it was weighed down by the recent disposal of BT Sport.

The figures come after BT recently warned over further job cuts and price hikes as it upped its cost-cutting target by £500m to £3bn by the end of 2024-25 in the face of soaring inflation and an uncertain wider economy.

It posted a 18 per cent drop in pre-tax profits to £831m for the six months to September 30, with rising inflation already impacting its bottom line and offsetting a 1 per cent rise in revenues.

The latest figures show pre-tax profits fell 15 per cent to £1.3bn in the first nine months of the year, though underlying earnings edged 3 per cent higher to £5.9 billion.

The group stuck by its full-year earnings outlook despite the pressure on pre-tax profits.

Philip Jansen, chief executive of BT, said: “We’ve grown revenue and EBITDA (underlying earnings) on a pro-forma, like-for-like basis, despite a challenging economic backdrop, and we’re transforming BT Group for the benefit of our customers.”

BT sees revenues fall in ‘tough’ trading conditions