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BT Reports 242,000 Q2 Openreach Line Losses, Cuts 5,000 Jobs, Plans Budget Broadband Brand

Rivals are poaching customers in areas lacking Openreach fibre, pressuring BT to pursue savings plus a low-cost offer.

Overview

  • BT said about 70% of recent broadband line losses occurred where full-fibre is not yet available, pointing to altnets exploiting coverage gaps.
  • Management plans a new low-cost broadband brand under its consumer unit to win back price-sensitive users without diluting the EE and BT tiers.
  • Guidance was reaffirmed as the company still forecasts roughly 900,000 line losses this fiscal year, with H1 group revenue down 3% to £9.8bn and pre-tax profit down 11% to £862m.
  • Headcount fell by around 5,000 to 111,000 in the half, delivering nearly £250m of savings and taking total programme savings to £1.2bn toward a £3bn annual target.
  • Openreach added 1.1 million full-fibre connections in the half and says coverage now tops 20 million premises, with the build on track to reach 25 million by end-2026.