BT profits surge after 14pc increase in broadband bills

PROFITS at BT have jumped after it imposed inflation-busting 14pc price rises on millions of broadband and mobile customers.

The telecoms company made a pre-tax profit of £1.5bn in the nine months to the end of December, up 15pc on a year earlier. Revenue was up 3pc at £15.8bn.

BT, which owns the EE mobile network, said the results were driven by its price increases and higher sales of full-fibre broadband services.

Like other telecoms providers, BT increased prices by more than inflation last year despite criticism for imposing extra pain on its customers during the cost of living crisis. Prices will rise by another 7.9pc next month.

The practice of inflation-linked price changes has drawn scrutiny from consumer groups owing to concerns that customers have been left in the dark about their bills.

Regulator Ofcom has said it will force companies to spell out price increases in pounds and pence.

In January, BT said it will change its pricing policy from the summer so that mobile customers will see their bills rise by at least £1.50, while rises in broadband bills will start from £3. In a trading update yesterday, BT said its full-fibre broadband rollout had accelerated to 73,000 premises per week. It has connected more than 13m homes in total.

However, the company warned of a tough broadband market amid competition from rival networks such as Cityfibre.

BT’S Openreach division lost 369,000 customers in the first nine months of the year, representing a decline of 2pc. The company expects losses to top 400,000 over the full financial year.

Revenues at BT’S ailing business division remained flat over the period, which the group blamed on higher costs and declines in legacy services.

The figures came as Allison Kirkby, former boss of Swedish telecoms firm Telia, took up the role of chief executive, replacing Philip Jansen.

Ms Kirkby said: “BT Group has delivered another quarter of revenue and EBITDA growth, while rapidly building and upgrading customers to our fullfibre broadband and 5G networks, and we continue to be on track to achieve our financial outlook for the year.

“We are providing great connectivity and services, while laying the foundations for future growth that will benefit our customers, investors and the UK.”