Telecoms giant BT has cut 2,000 jobs to slash costs but also says it will be investing in full-fibre and expanding its 5G network.
The group reported a 10% drop in pre-tax profits to £967 million for the six months to September 30 as revenues fell 3% to £10.1 billion.
It now expects annual revenues to fall by 1 percent to 2 per cent, blaming trading outside the UK and reductions to sales of less profitable kits.
It also flagged a weaker performance in the corporate and public sector and a ‘competitive retail environment’.
BT had previously guided for revenues to rise by up to 1 per cent in 2024-25.
But the company kept its underlying earnings guidance unchanged, for around £8.2 billion.
The firm also laid bare the pace of its previously announced jobs cull to slim down to between 75,000 and 90,000 workers by 2030 as it looks to shave billions off its cost base.
It said it slashed its workforce by 2,000, or 4% year-on-year, to 118,000 and saved £433 million in annual costs in the first half alone.
Allison Kirkby, BT’s recently appointed chief executive, said: ‘We have accelerated the modernisation of BT Group in the first half of the year.’
She said alongside widespread cost cutting, the group was also investing heavily and ramping up its full-fibre roll out.
‘Our nationwide full-fibre rollout has set new records, now reaching more than 16 million premises, and we have further extended our industry-leading take-up rate to 35%.’
She said the group had also expanded its 5G network to cover 80% of the UK population.
‘The accelerated modernisation of our operations, combined with a focus on connecting the UK, puts us in a strong position,’ she added.
In May, the group announced a further £3 billion in cost cuts over the coming years, as Ms Kirkby expanded on plans to turn around the struggling telecoms giant.
Ms Kirkby said at the time that the company had hit its initial target of £3 billion in savings a year before schedule, and said it would slash the same sum by 2029.
She took over the top role in February with aims to turn the business around and double down on cost-cutting efforts and aggressively roll out its full-fibre broadband network across the UK.