BT Group has reported net income of £651m for H1 2025/2026 (April 1 to September 30), down 14% year-on-year. Adjusted EPS reahed 9.30 pence, compared with 10.70 pence a year earlier, down 13%.

The group's adjusted revenue was £9.81bn, down 3% compared with the same period last year, penalized by lower revenues from fixed-line telephony, mobile handset sales and the performance of the international unit. Adjusted UK service revenues fell 1% to £7.73bn. Adjusted EBITDA was flat at £4.13bn.

Normalized free cash flow fell 43% to £408m, impacted by higher capital expenditure (+8% to £2.44bn), the absence of a tax refund received a year earlier, and a lower contribution from working capital management programs.

Net debt stood at £20.85bn at end-September 2025, up 3% year-on-year. The Board of Directors announced an interim dividend increase of 2% to 2.45 pence per share, in line with its policy of distributing 30% of the previous annual dividend.

'BT is successfully transforming itself in a competitive environment. Our simplification and modernization efforts, combined with our refocus on the UK, are offsetting pressures on international operations and labor costs. We remain on track to achieve our full-year financial targets," said Chief Executive Allison Kirkby.

The group has also confirmed its outlook for FY 2025/2026, targeting adjusted revenue of around £20bn, adjusted EBITDA of between £8.2bn and £8.3bn, and normalized free cash flow of around £1.5bn. The medium-term targets have also been reiterated.

"We are maintaining our 'reduce' recommendation on the stock, which currently offers a dividend yield of 4.6%," said Jean-Michel Salvador, a specialist in the stock at AlphaValue.

Shortly before 4 p.m., BT shares were up nearly 0.5% in London, while the Footsie was down slightly (-0.3%).