BT Group reports 24% rise in normalised free cash flow

The Tip Desk · June 11, 2026 · 1 min read

Lower capital expenditure and favorable working capital timing drove the cash flow increase despite a 2% drop in consumer revenue.

BT Group, a provider of customer-facing units, technology units and corporate functions, reported that normalised free cash flow rose 24% for the year ended 31 March 2026. The company said this growth was driven by lower capital expenditure and favorable working capital timing, though these gains were partly offset by lower EBITDA.

Consumer revenue fell 2%, which the company attributed primarily to lower handset volumes within a competitive market. UK service revenue remained flat year-on-year, as growth in the customer base and stable ARPU were partially offset by a 1 percentage point drag from voice.

EBITDA in the consumer segment decreased 2%. The company cited revenue flow-through, higher Openreach costs, and headwinds from the National Living Wage and National Insurance as drivers of the decline. Incremental PSTN closure costs ahead of January 2027 also impacted the result, though EBITDA was broadly flat when excluding prior-year one-offs.

Capital expenditure decreased 4%, driven by lower spending on retail stores and IT. This reduction contributed to a 9% year-on-year decrease in depreciation and amortisation.

In operational terms, the company achieved 104,000 postpaid mobile net adds, increasing the base to 14.0 million. Postpaid mobile ARPU was £19.3, a 1% decrease year-on-year. Broadband net adds reached 26,000, bringing the base to more than 8.2 million. Broadband ARPU was £41.7, down 1.0% year-on-year, while churn fell to 1.1%.

Total equity decreased by £344 million to £12,564 million. The company said profits of £1,077 million were offset by dividends to shareholders of £807 million and the remeasuring of the net pension obligation.