LONDON (Reuters) -Britain’s BT said it was on track to deliver its financial outlook for the year, with its boss adding there was more to do to simplify the company as it targets improved cash flow by the end of the decade.
In its first trading update since announcing a path to more than double free cash flow over the next five years, BT said that tight cost control had helped increase core earnings in the first quarter, despite a fall in revenue.
“We’ve made a solid start to the year, with excellent growth in both fibre build and connections, and increased EBITDA (core earnings),” Chief Executive Allison Kirkby said in a statement.
“Our ongoing cost transformation contributed to EBITDA growth, and more than offset the expected revenue declines in Consumer and Business in the quarter. There is much more to do to simplify BT Group and deliver for our customers.”
Britain’s biggest mobile and broadband provider had set out its plan to increase free cash flow in annual results in May.
“We remain on track to deliver our financial outlook for this year and our cash flow (targets),” Kirkby said.
Kirkby, who started the top job in February, said BT’s fibre network had reached 15 million properties, more than halfway towards the 25 million target set by her predecessor Philip Jansen.
BT said it was seeing strong demand for fibre, which it supplies to other providers as well as its own customers, with orders up 29% year-on-year and net adds of 387,000.
It reported a 0.3% decline in its broadband base and a 0.1% fall in its contract mobile base.
(Reporting by Alistair Smout, Editing by Paul Sandle)
