Some operational highlights
- FTTP build rate accelerated to 1.0m premises passed in the quarter, a record 78k per week. FTTP footprint now over 14m premises with a further 6m where initial build is underway; on track to reach 25m by December 2026. Department for Science, Innovation and Technology has notified Openreach of its preferred bidder status for Project Gigabit cross-regional supplier contract
- Strong Openreach customer demand for FTTP with net adds of 397k in Q4; total premises connected now over 4.8m with increased take-up rate of 34%
- Openreach broadband ARPU in FY24 grew year-on-year by 10% to £15.1 due to price rises and increased volumes and mix of FTTP; Openreach broadband line losses of 491k, a 2% decline in the broadband base, as weaker than expected growth in the broadband market in FY24 did not offset competitor losses which were at comparable levels to FY23; we expect that the broadband market will recover over the medium term but if it remains weak over the next 12 months then we can expect Openreach’s broadband base to be impacted by moderately higher competitor losses
- Consumer broadband ARPU in FY24 increased 5% year-on-year to £41.2; Consumer postpaid mobile ARPU increased 9% year-on-year to £19.4; monthly churn for the year remained stable in a competitive market with broadband and postpaid mobile both at 1.1%
- Business financial performance continues to be impacted by higher input costs, legacy declines, a one off revenue adjustment and prior year one-offs, partly offset by cost transformation and growth in Small & Medium Business (SMB) and Security
- Retail FTTP base grew year-on-year by 40% to 2.6m of which Consumer 2.4m and Business 0.2m; 5G base 11.1m, up 29% year-on-year
- Cost transformation target of £3bn gross annualised cost savings since May 2020 achieved 12 months early, at a cost to achieve of £1.5bn, £0.1bn lower than target. Announced further £3bn gross annualised cost savings by end FY29 at a cost to achieve of £1.0bn
- Capital expenditure amounted to £4.9bn, down 3% primarily driven by lower networks spend despite higher FTTP build in the year due to reduced unit costs and efficiencies; cash capex of £5.0bn also down 6%
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