BT revenue falls amid EE 5G roll-out
UK telecoms giant BT reported a 1% fall in first quarter revenue to £5.63 billion in the same period the firm started its roll-out of 5G services.
The mobile, landline, broadband and content provider said that “known headwinds from international calling plus mobile spend cap regulation drove” the revenue decline.
EE launched 5G
Despite tough trading conditions, the company’s EE division successfully launched the UK’s first 5G mobile network in six cities and it agreed the sale of the BT Centre for £210m and signed the lease for new headquarters in Aldgate, London.
“BT delivered results in line with our expectations for the quarter, with adjusted EBITDA declines in Consumer and Enterprise partly offset by growth in Global”, Philip Jansen, Chief Executive, commenting on the trading update, said.
“We are on track to meet our outlook for the full year.
“We made good progress during the quarter, including launching the UK’s first 5G network, delivering an improvement to our group net promoter score for the twelfth consecutive quarter, announcing the first nine cities in our consolidated office footprint, and being named the major broadband universal service obligation provider for the UK.
“In building a better BT for the future we need to be even more competitive. We will continue to take decisive action, including on price, to further strengthen our customer propositions and market position, both to respond to any short-term market pressures and to capitalise on longer-term opportunities.
“On network investment, we welcome the Government’s ambition for full fibre broadband across the country and we are confident we will see further steps to stimulate investment.
“We are ready to play our part to accelerate the pace of rollout, in a manner that will benefit both the country and our shareholders, and we are engaging with the Government and Ofcom on this.”
Investors reacted nervously to the results, which dragged the telco’s shares down more than 4% to £1.86 on the London Stock Market
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