BT Group CEO Philip Jansen was in buoyant mood as he presented his last set of financial figures before handing over the reins to Allison Kirkby early next year. Fortunately for Jansen, he is able to go out on a relatively high note following several challenging years.
On BT’s recent Q2 2024 earning call, Jansen ticked off what he considered to be some of his biggest achievements while at the helm, such as “bringing 40% of the UK premises within reach of our [fiber-to-the-premises/FTTP] network” and “launching the UK’s first and leading 5G service, which now supports almost 10 million customers.”
“BT Group is on the right track and in a much better shape than when I joined in early 2019, and I’m really pleased to be handing the baton to Allison, who knows the sector, knows the company, and knows what’s needed for the next phase of our journey,” he said.
During the call, while analysts wished Jansen well for his future after BT, they did not let him off lightly. Indeed, David Wright from Bank of America said (according to a Seeking Alpha transcript) that while there have been “many, many achievements … one thing that stands out is that despite all of this, the share price has not really performed so well.”
Jansen conceded that despite pursuing what he believes to have been the right strategy in the past few years, the share price is “very disappointing.”
“I just have to take that on the chin, which I do because I believe in the end, the market will recognize a good strong company that is more competitive … the market leader and has bright prospects. And that’s the bit that I think is absolutely self-evident in these results,” Jansen said.
BT’s share price did jump 6% after it reported second-quarter earnings ahead of forecasts, but Reuters noted that shares have halved since Jansen took over in 2019.
Solid progress, and some regrets
Overall, the group’s results for the first half of the current fiscal year have been well received, with Hargreaves Lansdown analyst Matt Britzman telling Reuters that “given the pressure shares have been under of late, investors should be relatively happy.”
In the six months to the end of September, revenue was broadly unchanged at £10.4 billion while adjusted EBITDA rose 6% to £4.1 billion. The reported profit before tax increased 29% to £1.1 billion.
Jansen said BT is confirming its financial outlook for the fiscal full year, “with normalized free cash flow now expected towards the top end of the guidance range.” He also noted that the group’s transformation program “has now delivered £2.5 billion in annualized savings” and is “well on track to meet our £3 billion savings target by fiscal year 25.”
In terms of the operator’s fiber and 5G networks, BT said the number of fiber-to-the-premises passed increased by 1.6 million to 11.9 million, while the 5G network now covers 72% of the U.K. population, and 5G retail connections increased by 1.3 million to 9.9 million.
The 5G network is being built and operated by BT-owned EE, which has also just been relaunched as “new EE” with a new digital platform and a plan to sell more services beyond traditional connectivity offerings.
Asked if he had any regrets about his almost five years as CEO, Jansen told journalists that he “would have liked to have gone faster on everything, frankly,” according to Reuters.
“I think we’ve made enormous progress,” he added.