BT Group adds £312m in savings as H1 profit rises 24%

By Amara Osei

BT Group delivered £312 million in annualised savings in fiscal H1 2027, while net profit including discontinued operations rose 24% to £809 million.

The six-month period to end-September gave chief executive Allison Kirkby plenty of numbers to defend BT's UK-focused transformation. She cited cost cuts, revenue growth, higher pre-tax earnings and improving customer satisfaction in a highly competitive UK market.

How far has BT got with its savings plan?

BT said the six-month savings lift took its cumulative total to £1.7 billion, against a £3.5 billion target for FY2030. The operator has spent £800 million to achieve those savings.

The figures do not describe the same time basis: BT described the £312 million as annualised savings and the £1.7 billion as the total trimmed to date. That distinction keeps the headline in proportion.

What do the operating figures show?

BT reported three operating efficiencies:

• Labour resource: 90,000 people, down 11% year on year.
• Energy use: down 7%.
• Repairs conducted by wholesale fixed provider Openreach: down 16%.

Those reductions support Kirkby's efficiency claim. They also measure inputs and activity rather than service outcomes; the statement offered no repair-time benchmark or customer-satisfaction score.

BT did not break down how much each measure contributed to the £312 million annualised savings, so the operational figures cannot be reconciled line by line with the headline.

Where are revenue and customer demand moving?

BT reported a 1% revenue rise to £8.8 billion after stripping out discontinued operations, including the part moving into the Verizon joint venture. Higher handset earnings partly offset a fall in adjusted service revenue, leaving the top line positive despite that decline.

The two headline growth rates do not share the same reporting base. BT calculated the 1% revenue rise after removing discontinued operations, while the 24% net profit increase included them. Treating them as one operating trend would be tidy, but analytically sloppy.

Kirkby described demand for full-fibre connectivity at Openreach as high, and cited rising sales of bundled mobile and TV services in the consumer divisions. High demand is not a subscriber count, though; BT gave no fibre additions, coverage or throughput figures. Nor did it attach a score to its customer-satisfaction improvement.

What do the Verizon and TalkTalk deals change?

The June agreement with US operator Verizon combines BT's international operations with Verizon's, according to the plan. Kirkby said the joint venture was “progressing at pace,” and BT aims to complete it before the end of calendar-year 2027. The wording is reassuring; the completion date is the firmer measure of execution.

BT also struck a deal in October to acquire UK rival TalkTalk from its administrators. Kirkby said BT had stepped up for the country and argued that the transaction was “protecting millions of customers while creating value for all our stakeholders.” Regulatory review remains outstanding, so completion is not yet assured.

Together, the moves sharpen BT's domestic focus while shifting international operations into a joint venture. They also create two distinct closing tests before BT can claim the shape of its new portfolio is settled.

What should customers and investors watch next?

The immediate checkpoints are regulatory clearance for TalkTalk and completion of the Verizon joint venture before the end of calendar 2027. BT must also keep savings progressing toward £3.5 billion by FY2030 and show whether full-fibre demand converts into subscriber growth.

For now, the first-half case rests on £312 million in annualised savings and a 24% profit increase, rather than a completed overhaul. Neither milestone settles whether BT can convert demand into service revenue while sustaining the savings programme.