BT Group has outlined its full-year results to March 31, 2026, showcasing a mixed financial performance but a clear path forward in its turnaround, driven by strong operational achievements in its Openreach division. Adjusted revenue for the year stood at £19.6 billion, a 4% decrease, and reported revenue was £19.7 billion, down 3%. This was primarily due to lower international revenue, divestments, declines in handset trading, and a decrease in adjusted UK service revenue, which fell 1% to £15.4 billion due to lower voice volumes. However, adjusted EBITDA remained flat year-on-year at £8.2 billion, supported by significant cost transformation and control measures. Excluding divestments, like-for-like adjusted EBITDA increased by 1%. Reported profit before tax rose 8% to £1.4 billion, largely due to lower specific items and depreciation, despite higher finance expenses.
Operationally, BT achieved record progress in its fibre rollout and connections. Openreach passed 4.8 million premises with FTTP, bringing its total footprint to 23.8 million, exceeding two-thirds of all UK premises and remaining on track to meet its target of 25 million by December 2026. The company saw record customer demand for Openreach FTTP, with 2.2 million net additions, and a market-leading take-up rate of over 38%. The retail FTTP base grew 31% year-on-year to 4.5 million subscribers. Furthermore, EE's 5G+ population coverage expanded significantly to 73% from 43% last year, and its 5G base reached 14.5 million, up 10%. The company also achieved £580 million in gross annualised cost savings during FY26, contributing to a total of £1.5 billion over two years, and raised its overall transformation plan target to £3.7 billion from £3.0 billion.
BT's net debt remained broadly stable at £20.0 billion. Capital expenditure increased 6% to £5.1 billion, reflecting higher FTTP provisioning and build activity. Normalised free cash flow, however, saw a 6% decrease to £1.5 billion, mainly due to higher cash capital expenditures and interest costs. Despite this, BT reiterated its guidance for improved financial performance in the coming years, forecasting normalised free cash flow to increase to approximately £2.0 billion in FY27 and around £3.0 billion by the end of the decade. The company also announced an increased full-year dividend of 8.32 pence per share, up 2% from 5.76 pence per share, and an updated dividend policy to grow dividends by a low to mid-single-digit percentage annually from FY27.
The outlook for FY27 includes adjusted revenue of £19.0-£19.5 billion, adjusted UK service revenue of £15.1-£15.4 billion, and adjusted EBITDA growth within the range of £8.2-£8.3 billion. Capital expenditure, excluding spectrum, is projected to be around £4.3 billion. Mid-term guidance points to sustained growth in adjusted revenue, adjusted UK service revenue, and adjusted EBITDA, with capital expenditure expected to reduce by more than £1 billion from the FY26 level. The company's record BT Group NPS of 33.4, up 4.1 points year-on-year, indicates improved customer satisfaction across all brands.
