BT Group (LSE: BT.A) has reported a 49% increase in post-tax profits to £1.3 billion for the last nine months of 2022, despite a 3% decline in total Revenue to £15.6 billion. The decline in revenue was primarily due to weaker trading in the enterprise and global divisions, caused by declining legacy product purchases and a decrease in strategic equipment orders. However, the consumer-facing business saw a flatline in revenue following the sale of a 50% stake in its pay television sports network.
BT's joint venture with Warner Bros. Discovery and the growth in its fiber-to-the-premises customers helped boost the division's earnings by 15%. The high interest in next-generation products also drove a record 155,000 customers to its full-fiber products in the final quarter of 2022. Openreach, the group's digital network arm, was the only division to report an increase in revenue, due to solid demand for fiber-enabled products and Ethernet, as well as price hikes.
To deal with rising costs and the need to upgrade its network, BT plans to raise its monthly broadband prices by 15% in March. The company aims to cut costs by £3 billion by the end of 2025 and deliver greater supply chain efficiencies through the merger of its enterprise and global divisions into a new unit called BT Business. Despite the increase in profits, the company's net debt stands at £19.2 billion, which is a concern as interest rates are rising.
