BT Group half-year profit rises 12% as full fibre take-up hits 41%

What happened. On November 5, BT Group published results for the six months to September 30, 2026. Pretax profit was £1.07 billion, up 12% from £956 million. Revenue was £8.75 billion, up 1%. Adjusted EBITDA, a profit measure before interest, tax and depreciation, was £4.10 billion, up 1%. BT credits lower restructuring costs for the profit rise.

The market. Reuters reports that BT shares hit an eight-year high on Thursday, November 5. They were already up 22% since the start of the year and rose 5% in early trading. For the second quarter, revenue was £4.428 billion and adjusted core earnings were £2.084 billion. Both were slightly above a company-compiled consensus of £4.314 billion and £2.022 billion.

Fibre. Openreach, BT's network arm, saw record demand for full fibre, which means cable all the way to the home. It added more than 1.1 million net connections in the half year. At the end of September 9.9 million premises were connected, and in October the number passed 10 million. Take-up, the share of reachable homes that sign up, reached 41%. The network now covers 24.1 million premises. BT expects to reach its 25 million target in March 2027. Reuters says CEO Allison Kirkby put connecting customers first, which pushed the target to March.

The other side. Openreach lost 175,000 broadband lines in the second quarter and 366,000 in the half year. It still expects to lose about 800,000 for the full year. Reuters says some customers moved to other fibre networks. It also notes that Virgin Media O2 cut back its own fibre plans on Tuesday, which could ease the pressure on Openreach.

Cash and debt. Normalised free cash flow, the company's adjusted cash measure, fell 59% to £236 million. BT points to higher working capital outflows. Net debt rose to £21.0 billion from £20.0 billion at the end of March, because of scheduled pension payments and dividends. BT kept its guidance: about £2.0 billion of normalised free cash flow this year, excluding TalkTalk, and about £3.0 billion by the end of the decade.

Deals and dividend. BT bought TalkTalk out of administration on October 5, which keeps service going for 2.5 million UK customers. A regulatory review is still pending. The planned international joint venture with Verizon is due to complete in the second half of calendar 2027. The interim dividend is 2.50 pence a share, up from 2.45 pence, payable on February 10, 2027 to shareholders on the register on December 29, 2026.

What is missing. The outcome of the TalkTalk review is unknown, and BT has not yet said how the deal will change its revenue and profit. It is also unclear how many more customers will move to rival fibre networks.

Hechos confirmados

• In the half year to September 30, 2026, BT Group's pretax profit was £1.07 billion, up 12% from £956 million; revenue was £8.75 billion, up 1%.^[1][3]
• Adjusted EBITDA was £4.10 billion, up 1%.^[1][3]
• The interim dividend is 2.50 pence a share, up 2% from 2.45 pence; it is payable on February 10, 2027 to shareholders on the register on December 29, 2026.^[1][3]
• Openreach added more than 1.1 million net full fibre connections in the half year; 9.9 million premises were connected at the end of September and more than 10 million in October; take-up reached 41%.^[1][2][3]
• The full fibre footprint reached 24.1 million premises; BT expects to reach its 25 million target in March 2027.^[1][3]
• Openreach lost 175,000 broadband lines in the second quarter and 366,000 in the half year, and still expects to lose about 800,000 in the full year.^[1][2][3]
• Normalised free cash flow fell 59% to £236 million; net debt rose to £21.0 billion from £20.0 billion at March 31, 2026.^[1][3]
• BT expects normalised free cash flow of about £2.0 billion this year, excluding TalkTalk, and about £3.0 billion by the end of the decade.^[1][2][3]
• Second-quarter revenue was £4.428 billion (up 2%) and adjusted core earnings £2.084 billion (up 3%), slightly above a company-compiled consensus of £4.314 billion and £2.022 billion.^[2]
• BT shares hit an eight-year high on November 5, after rising 22% since the start of the year; they were up 5% in early trading.^[2]
• Reuters says some Openreach customers switched to alternative fibre networks, and that Virgin Media O2's decision on Tuesday to scale back its own fibre plans could ease competitive pressure.^[2]
• BT acquired TalkTalk out of administration on October 5, protecting service continuity for 2.5 million UK customers; a regulatory review is pending.^[1][3]
• The proposed international joint venture with Verizon is expected to complete in the second half of calendar 2027.^[1][3]

Implicaciones

• ConfirmadoRecord full fibre demand is the main driver of BT's results this half year.
• Nuestra lecturaCash flow was £236 million in the first half against a target of about £2 billion for the year, so the second half has to deliver much more. This is our view.
• Nuestra lecturaVirgin Media O2's retreat from its own fibre build may slow the loss of Openreach lines. This is Reuters' reading, not a result yet.

Todavía no se sabe

• How the regulatory review of the TalkTalk deal will end
• How the TalkTalk deal will change BT's revenue and profit
• How many more customers will move to rival fibre networks

A quién afecta

United Kingdom, World. People who follow telecom and infrastructure companies, and UK broadband users

Fuentes

1. BT Group (investor relations): Results for the half year to 30 September 2026 5 de noviembre de 2026 · oficial
2. Reuters: BT's shares at eight-year highs after record fibre take-up underpins earnings 5 de noviembre de 2026 · medios
3. Yahoo Finance UK: BT Group Reports 12% Rise in Half-Year Pretax Profit to £1.07 Billion and Raises Interim Dividend 5 de noviembre de 2026 · medios