BT loses hundreds of thousands of customers to cheaper rivals
Allison Kirkby, the BT chief executive, said: 'We're basically assuming that the alt-nets will continue to be funded and that TalkTalk will continue to selectively invest in maintaining its customer base.'
Karen Egan, at Enders Analysis, said: 'Openreach, like the other established players, are suffering line losses as a consequence of the alt-net fibre goldrush, and TalkTalk customer declines.
'It makes things tough for now but the free cashflow recovery story is not at risk and the line losses should moderate as the alt-nets no longer have the funding to expand their networks.'
Despite the customer losses, BT said it had expanded its full-fibre network by a record 4.3m homes last year, taking its total footprint to more than 18m.
The company has now raised its target to hit 5m homes in the coming financial year, with the ultimate aim of reaching 25m by the end of 2026.
Overall, BT's revenues dipped 2pc last year to £20.4bn, which it blamed on tough trading in its international division and weaker handset sales. Pre-tax profits rose to £1.3bn as the business benefitted from cost-cutting.
'We're well ahead of the rest'
The telecoms giant has now carved out its international business and Ms Kirkby said she was open to all options, including a potential joint venture.
Meanwhile, BT is also facing fierce new competition in the mobile market as Vodafone and Three prepare to combine in a £15bn mega-merger. The newly combined company will usurp BT's EE as the UK's largest mobile network operator.
Ms Kirkby insisted that she was not concerned about the new rival, saying: 'We're well ahead of the rest, so we don't feel the need to change our current plans.'
The BT chief executive, who took over the job at the beginning of last year, has been looking to refocus the telecoms giant on its core telecoms operations in the UK.
BT is reportedly closing in on a deal to sell its 50pc stake in TNT Sports to joint venture partner Warner Bros Discovery, ending its foray into sports broadcasting after more than a venture.
Ms Kirkby's progress has been closely overseen by Sunil Mittal, the Indian telecoms billionaire who became BT's largest shareholder last year. The pair are scheduled to meet to discuss strategy in the next few weeks.
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