BT plans Capex of £5.1 bn during 2023-24 fiscal

BT Group said its capital expenditure (Capex) excluding spectrum will be £5 billion – £5.1 billion during the fiscal year 2023-24.
BT Group officeBT’s capital expenditure for fiscal 2022-23 fell 4 percent to £5.056 billion, mainly driven by the impact of prior-year investment in spectrum offsetting increased fixed network investment; capital expenditure excluding spectrum payments up 5 percent.

BT reported revenue of £20,681 million (–1 percent) in fiscal 2022-23, driven by the removal of BT Sport revenue, legacy product declines including copper products in Openreach and CPS products in Enterprise, lower equipment sales in Global and the loss of an MVNO customer.

BT Group has generated revenue of £9,737 million (–1 percent) from Consumer, £4,962 million (–4 percent) from Enterprise, £3,328 million (–1 percent) from Global and £5,675 million (+4 percent) from Openreach.

BT reported operating costs of £18,062 million (+1 percent), primarily due to increased depreciation and cost inflation partially offset by tight cost control and the removal of BT Sport rights and production costs.

BT TRANSFORMATION

# In FY28-FY30, BT Group’s transformation will be reflected in:

# Reduction in total labour resource from 130k to between 75-90k

# Increase in Openreach FTTP premises passed from 10.3 million to between 25-30 million

# Increase in Openreach FTTP take-up from 30 percent to between 40-55 percent

# Increase in retail FTTP take-up from 1.8 million to between 6.5-8.5 million

# Increase in 5G UK population coverage from 68.1 percent to >98 percent, and 5G connections from 8.6 million to between 13-14.5 million

# Increase in Group NPS from 22.1 to between 30-35

Openreach has reaffirmed its target to reach 25 million premises with FTTP by the end of 2026 and plans to further accelerate take-up on the network.

FTTP build of 702k premises passed in the quarter at an average build rate of 54k per week, with 41 percent of 25 million build completed; FTTP footprint of 10.3 million, up 43 percent, with a further 6 million where initial build is underway.

Customer demand in Openreach for FTTP extremely strong with FY23 orders up 70 percent; take up rate grew to 30.4 percent with record additions of 395k in the fourth quarter; base now c.3.1 million. BT said consumer FTTP connections are up 50 percent with the base now over 1.7 million.

BT has 8.6 million 5G connections, up 62 percent on last year. BT’s 5G network covers 68 percent of the population in UK.

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