“We remain laser-focused on modernizing and simplifying the BT Group,” Philip Jansen, BT’s chief executive, said in a statement on Thursday. “Given the current high inflation environment, including significantly increased energy prices, we need to take additional measures on our costs to maintain the cash flow needed to support our grid investments,” he said. BT has revised its target for cost savings from £2.5bn to £3bn by the end of 2025. BT is embroiled in a pay dispute with staff, led by the Communications Workers Union, over a pay package offered in April. Last month, about 40,000 workers downed tools in four days, calling for Jansen to return to the bargaining table to talk about pay. The group on Thursday posted second-quarter revenue and profit broadly in line with analysts’ estimates, boosted by its consumer divisions and Openreach, which both implemented inflation-linked price rises in April. The former UK monopoly reported flat revenue in the quarter compared with a year earlier at £5.24bn, in line with consensus forecasts, and a 5 per cent rise in adjusted EBITDA to 1.97 £bn, slightly above estimates. Profits in the consumer division rose by a fifth to £670m, offsetting an 18 per cent fall in adjusted ebitda in the business division. Most telecoms groups implemented price increases this year that built inflation into mobile and broadband rates. BT has chosen to increase its mobile and broadband prices in line with the consumer price index, plus an extra 3.9%.
