Telecommunications giant BT has reported a significant downturn in its financial performance, with third-quarter figures revealing a substantial loss of broadband customers and a sharp decline in profits. The company disclosed that during the last three months of 2025, its Openreach wholesale broadband network experienced a net departure of 210,000 customers.
Financial Performance Under Pressure
BT's financial results for the quarter showed revenues falling by 4% to £5 billion, while pre-tax profits experienced a dramatic 57% year-on-year decrease to £183 million. The company attributed £214 million of the £244 million profit reduction to its share of losses at TNT Sports, the pay television broadcaster it co-owns with Warner Bros Discovery.
Customer Loss Projections Revised
While maintaining that the company remains on track to meet its annual financial forecasts, BT chief executive Allison Kirkby revealed updated projections for broadband customer losses. The company now expects to lose approximately 850,000 broadband customers across the full financial year, representing a slight improvement from previous guidance of 900,000 losses.
Market Reaction and Share Performance
Following the announcement of these results, BT shares experienced a 1% decline in Thursday trading. The telecommunications sector faced broader challenges, with Vodafone shares falling more than 6% after the company reported that third-quarter revenue had missed market expectations.
Vodafone's Integration Challenges
Vodafone's UK operation, currently navigating the complex integration with rival Three, reported a 0.5% revenue decline. The newly combined VodafoneThree entity lost 73,000 mobile contract customers during the quarter, primarily attributed to departures among low-value business customers.
Vodafone group chief executive Margherita Della Valle provided some positive indicators, noting that customer churn rates at Three UK had improved by 3.1 percentage points in the six months since completing the takeover. Across all Vodafone brands, including Voxi and Smarty, churn reduced by 1.7 percentage points year on year.
Industry-Wide Challenges
The simultaneous difficulties reported by two of Britain's largest telecommunications providers highlight broader sector challenges. Both companies are navigating:
- Intense market competition
- Customer retention pressures
- Significant operational integrations
- Changing consumer preferences and expectations
These third-quarter results demonstrate the ongoing transformation within the UK telecommunications landscape, as major providers adjust their strategies amid evolving market conditions and consumer behaviour patterns.
