BT’s Q3 reported revenue of £17,246m was down 2%1 primarily due to ongoing headwinds from regulation, competition and legacy product declines, it says. Reported profit before tax of £1,911m, down 3%1, due to the fall in revenue, higher spectrum fees, investment in customer experience and higher operating costs in Openreach.
But the Government’s decision on Huawei equipment use will cost it £500m. Philip Jansen, Chief Executive, commenting on the results, said “"We are supportive of the clarity provided by Government around the use of certain vendors in networks across the UK and agree that the priority should be the security of the UK’s communications infrastructure. We are in the process of reviewing the guidance in detail to determine the full impact on our plans and at this time estimate an impact of around £500m over the next 5 years.
“BT delivered results slightly below our expectations for the third quarter of the year, but we remain on track to meet our outlook for the full year.
“We continue to invest in the business. During the quarter we launched Halo, the UK’s ultimate converged plan, which will give homes and businesses the best connection and service. We’ve continued to use our national scale and local presence across the UK to provide customers with the best possible experience, for example by meeting our promise to answer all customer calls in the UK and Ireland and bringing BT sales and service back to the high street in nearly 500 BT/EE stores.
“Underpinning the ongoing development of market-leading propositions, we continue to invest in the best converged network. We welcomed the direction of Ofcom’s recent consultation, which is an important step forward towards a widely-shared ambition to invest in fibre across the whole of the UK. We’re also investing in 5G, making it available in over 50 locations, with the first customers enjoying a great experience."
