BT Group Nine-Month Pretax Profit Fell as Depreciation Offset Ebitda Growth -- Update

By Kyle Morris

BT Group PLC said Thursday that nine-month pretax profit fell due to increased depreciation that offset earnings before interest, taxes, depreciation and amortization growth.

The U.K. telecommunications company said revenue for the period to Dec. 31 was 15.59 billion pounds ($19.29 billion) compared with GBP15.68 billion a year earlier as the BT Sport disposal offset service revenue growth.

Pretax profit for the nine months was GBP1.31 billion compared with GBP1.54 billion a year prior. Adjusted Ebitda was GBP5.88 billion compared with GBP5.71 billion a year before.

BT backed its financial guidance for the year. According to company-provided consensus, the company is expected to make revenue of GBP20.53 billion and adjusted Ebitda of GBP7.91 billion for fiscal 2023.

It also said it will undertake the merger of Enterprise and Global to create BT Business, to enhance value for B2B customers and help deliver synergies as part of its GBP3 billion cost-saving target.

"We continue to accelerate our investments in the UK's leading next generation networks; we're combining our Enterprise and Global operations to create BT Business, a single, strengthened B2B unit; and we're going further on cutting costs to deliver GBP3 billion in annualized savings by the end of FY25," Chief Executive Philip Jansen said.

Write to Kyle Morris at [e-mail]

(END) Dow Jones Newswires

February 02, 2023 03:05 ET (08:05 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.