BT will increase its cost savings target by one fifth and continue to raise inflation-related prices in 2023 for most customers in an effort to mitigate rising energy costs and inflation.
“We remain focused on modernizing and simplifying the BT group,” BT chief executive Philip Janssen said Thursday.
“Given the current hyperinflationary environment, including rising energy prices, we need to take additional measures in our costs to maintain the cash flow needed to support our grid investments,” he said.
BT has revised its cost savings target from £ 2.5bn to £ 3bn by the end of 2025.
BT was involved in a wage dispute with staff led by the telecommunications union over a wage package introduced in April. Last month, some 40,000 workers threw down their gadgets in four days, asking Jansen to return to the negotiating table to talk about wages.
On Thursday, the group reported second-quarter revenue and profits broadly in line with analysts’ estimates, supported by the consumer and Openreach divisions, which both implemented inflation-related price increases in April.
The former UK monopoly posted stable year-over-year revenues of £ 5.24bn, in line with consensus estimates, and a 5% increase in Adjusted EBITDA to £ 1.97bn. above estimate.
The consumer division’s revenue increased by a fifth to £ 670 million to offset an 18% drop in the business division’s adjusted interest, tax and depreciation rate.
Most telecom groups have implemented price hikes this year, which have led to price inflation for cell phones and broadband services. BT chose to raise mobile and broadband prices in line with the consumer price index, plus a further 3.9 percent.
