BT saw revenues jump a massive 35 percent to £5.78 billion in the quarter ended June 30, mainly due to its acquisition of EE at the end of January.
On an underlying basis, revenue inched upwards by 0.4 percent.
Ebitda increased by 25 percent in the quarter to £1.818 billion, although underlying Ebitda was down two percent, reflecting the launch of BT Mobile handsets, the company said. Adjusted profits before tax climbed 16 percent to £802 million.
EE contributed 21.5 percent, or £1.243 billion, to BT’s total revenues, falling just behind its Global Services (£1.25 billion) and Openreach (£1.252 billion) businesses.
In terms of Ebitda, EE contributed 15.45 percent (£281 million), with Openreach (34.7 percent) and BT’s Business and Public Sector divisions (19.6 percent) providing the lion’s share.
Gavin Patterson, Chief Executive, said: “Our integration of EE is progressing well, alongside our business reorganisation. EE performed strongly, both financially and commercially, and our customers are seeing the initial benefits of our acquisition with BT Sport now available to EE pay monthly customers. We remain focused on improving customer experience.”
Consumer revenue was up nine percent, with broadband and TV revenue up 21 percent, although Ebitda fell away by seven percent.#
BT said its superfast fibre broadband network now reaches 25 million premises, and its total base stands at 4.3 million, with 181,000 net additions in the quarter. It claimed a 79 percent share of DSL and fibre broadband additions, with 76,000 from total market growth of 95,000.
BT said its audience figures for BT Sport increased 58 percent in the period.
Openreach revenues were flat, with a strong performance in fibre offsetting the impact of regulatory price changes. Ebitda at Openreach was down 1 percent. Openreach added 333,000 fibre broadband connections, bringing its total base to 6.2 million.
Patterson responded to Ofcom’s recommendation that Openreach should be separated from its parent. “Having listened to Ofcom and industry, we have set out our proposals for greater independence and transparency for Openreach,” he said.
“Our proposals can form the basis for a fair, proportionate and sustainable regulatory settlement and we believe they can also enable Ofcom to bring its Digital Communications Review to a speedier conclusion. We will continue to engage with Ofcom over the coming months.”
Revenues at BT Global Services were up nine percent, with the most significant jump in Ebitda of all its units, finishing 28 percent up on 2015. BT’s wholesale division saw revenues decline 10 percent, although Ebitda rallied eight percent. Revenues jumped 18 percent at its Business and Public Sector units.
BT’s total mobile base stood at 30.3 million at the end of the period, with 244,000 net additions on contract, bringing its postpaid base to 16.2 million, and 291,000 losses on pay-as-you-go. Its 4G base reached 16.7 million. Churn was at a record low of one percent for EE postpaid customers.