BT Group has revealed a slowdown in customer attrition, offering a glimmer of hope in the competitive broadband landscape. Despite shedding 210,000 broadband customers in the last quarter of 2025, the losses were less severe than anticipated, allowing the telecoms giant to revise its full-year projections for Openreach fixed-line broadband losses downward.
Customer Losses Less Severe Than Expected
The latest figures indicate that BT’s broadband customer losses were below the market’s forecast, which had anticipated a drop exceeding 230,000. This prompted the company to adjust its full-year estimate for Openreach losses from 900,000 to a more optimistic 850,000. This shift signals a potential stabilisation in BT’s customer base, a welcome development for a firm that has faced increasing competition from low-cost providers, often referred to as “retail altnets,” like CityFibre.
BT’s chief executive, Allison Kirkby, spoke to the Press Association about the improving landscape. “We’re building further and faster across the country than anybody else, because we’re getting into the areas where we didn’t previously have fibre,” she noted. The expansion of full-fibre coverage has been a crucial factor in sustaining customer interest, with BT adding 571,000 new customers in this segment during the quarter.
Financial Performance Takes a Hit
While the news on customer losses is encouraging, BT’s financial performance has been less than stellar. The company reported a 4 per cent decline in revenues, totalling £5 billion for the quarter ending December 31. Adjusted UK service revenues fell by 2 per cent to £3.8 billion, driven by a drop in equipment sales linked to weaker demand for handsets and strategic divestments.
Pre-tax profits also took a significant hit, declining to £183 million compared to £427 million in the same quarter last year. This downturn was exacerbated by £214 million in losses associated with its sports joint venture, TNT Sports, which BT operates alongside Warner Bros Discovery amid escalating competition from platforms like Netflix and Paramount Skydance.
Strategic Focus and Future Outlook
Despite the challenging financial landscape, BT remains resolute in its commitment to transforming the UK’s digital infrastructure. Kirkby asserted that the company is on track to meet its financial guidance for the current year, reinforcing BT’s strategy of connecting more homes and businesses to next-generation networks. “Our network leadership strengthened further in the quarter, with full-fibre broadband now reaching more than 21 million homes and businesses, and our 5G+ network accessible to 69 per cent of the population,” she stated.
Openreach has achieved record levels of full-fibre connections, and BT’s consumer division has reported gains in broadband, mobile, and television services, indicating a positive trajectory in a tough market.
Why it Matters
As BT navigates through a challenging phase with declining profits yet improving customer retention, the telecoms giant’s ability to adapt and innovate will be pivotal for its future. The company’s focus on expanding its full-fibre network could help solidify its market position amid fierce competition, ultimately benefiting consumers with better connectivity options. With the UK’s digital landscape evolving rapidly, BT’s strategic decisions in the coming months could set the tone for the telecoms sector as a whole.
