Speculation mounts as BT gets ready to reveal its annual set of results

City analysts will be waiting nervously to see if the cost-of-living crisis has seen an exodus in subscribers from BT when the firm reveals its results on Thursday.

Netflix said recently its own subscriber base had suffered as households cut back and BT investors hope similar trends are not seen more broadly.

Bosses are expected to tell the City revenues dropped in the past year as it faces rising costs which have already been passed on to customers.

Analysts predict total group revenue dropped by 2.3% to £20.9 billion in the year to March 2022, with the full-year results due on Thursday.

BT says it had to make tough pricing decisions this year as the cost of investing in its networks shot up due to increased demand for mobile data and soaring inflation.

The network provider says it raises prices in line with the consumer price index (CPI) plus 3.9%, meaning customers could see bills rise by up to 11% following the latest CPI inflation reading of 7%.

The company, which owns mobile provider EE, said data usage by customers rose rapidly so it had to spend more on its networks to handle demand.

BT has been in the public eye in recent months due to takeover speculation, in part fuelled by an 18% stake acquired by French telecoms magnate Patrick Drahi in December.

It also announced it is in talks with Eurosport owner Discovery in February to create a joint venture that would prop up its BT Sport division.

Investors will be looking out for any updates on the 50-50 venture talks and if the company will address speculation surrounding Mr Drahi’s increased stake.

But analysts query the likelihood of the government allowing a takeover in light of a growing number of UK firms sold to private equity firms and overseas investors.

Shareholders will also look to see how BT’s 5G fibre rollout to millions of homes has affected its balance sheets.

BT-owned Openreach said it connected more than seven million homes to its full-fibre network in April and is adding 50,000 households every week.

Patrick Drahi.