BT report 3pc increase in profit, despite revenue fall

BT

BT Group shares rose over 5 percent on Friday, after reporting a 3 percent rise in adjusted profit in the first quarter.

Revenue, however, fell by an expected 2 percent to £5.72 billion, after having had to reduce prices for its Openreach broadband services.

Adjusted pretax profit rose to £816 million, while bottom line profit jumped an impressive 68 percent to £704 million. Adjusted earnings (EBITDA) increased by 1 percent to £1.8 billion, despite capital expenditures also rising to £839 million.

“We’ve made a good start to the year. We are making positive progress against our strategy,” said Gavin Patterson, Chief Executive.

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“EE continues to maintain its network leadership and will switch on the UK’s first live 5G network trial in October.

“Initiatives to transform our operating model have seen a gross reduction in c.900 roles across the Group and improved cost performance.”

Shares in BT (LON:BT.A) are currently trading up 5,85 percent at 238.00 (1537GMT).