BT Group Reports Mixed Q3 Results with Declining Revenue

BT Group announced its third-quarter profit before tax of 427 million pounds, marking a 1% growth year-over-year. However, the reported revenue fell by 3%, which can negatively impact the stock.

Date: 30-01-2025

AI Rating: 5

Overview of Financial Performance

BT Group plc's financial results reveal mixed outcomes for its third quarter. Despite a rise in profit before tax by 1% to 427 million pounds, driven largely by an increase in EBITDA, the company faced challenges with revenue.

Revenue Growth

Reported revenue for the quarter was 5.2 billion pounds, indicating a decline of 3% compared to the previous year. This downturn in revenue can signal potential concerns for investors, as declining revenues may limit future growth opportunities.

Adjusted EBITDA

On a positive note, adjusted EBITDA rose by 4% to 2.1 billion pounds from 2.03 billion pounds last year. This increase indicates that the company is managing its operating expenses efficiently, but alone does not compensate for the overall revenue decline.

Future Outlook

BT's commitment to reconfirming its financial outlook for FY25 and its mid-term guidance suggests a focus on long-term stability, which may offer some reassurance to investors despite current challenges.

The mixed signals in these results could lead to volatility in BT Group's stock price. Given the falling revenue amid positive EBITDA growth, investors may reassess the company's potential for future growth, impacting stock price movement in the near term.

Stocks: BT