BT Group CEO Allison Kirkby on 50%+ Share Price Boost and Customer Challenges

First Year Highlights and Challenges

• 💡 People are the biggest highlight, along with the UK's largest infrastructure project (fiber build) being ahead of schedule and cost.
• ⚠️ Lowlights include a highly competitive market, slow modernization due to legacy technology, and consequently, losing too many customers.

Strategic Investment & Market Evolution

• 🚀 BT Group is the FTSE-100's biggest investor in UK infrastructure, committing £4.8 billion annually to create a new, 40-50 year asset.
• 🎯 Openreach anticipates a lower wholesale market share but a more profitable and efficient product with improved customer experience.
• 📈 The company is refocusing on the UK, divesting international businesses like BT Italy and BT Ireland, to concentrate capital on core domestic operations.

Financial Performance & Shareholder Value

• 💰 BT's share price has seen a 50%+ increase since Allison Kirkby's appointment, directly linked to free cash flow generation.
• 📊 A clear roadmap was presented to grow free cash flow from £1 billion to £3 billion (with £2 billion by 2027), which the market has credited.
• ✅ Openreach's fiber build is recognized as world-leading, contributing significantly to the company's positive trajectory.

AI Integration & Operational Efficiency

• 🧠 AI has already delivered substantial benefits, including a 30-40% boost in developer productivity.
• 💬 The AI chatbot "Aimee" achieves a Net Promoter Score 20 points higher than human equivalents for specific tasks.
• 🛠️ AI is used for smarter fiber build planning in Openreach, reducing truck rolls and improving cost efficiency.
• 📉 BT is undergoing a workforce transformation to become more agile, aiming to reduce its 130,000-strong workforce through natural attrition and less reliance on subcontractors.

Future Market Landscape & Growth Opportunities

• 🌍 Drawing insights from Scandinavia, the UK full fiber market is expected to consolidate from ~100 providers to a few nationwide wholesalers and city-focused operators.
• ⏳ Consolidation is anticipated to play out over the next 2-5 years, with the final state likely extending into the next decade.
• 🤝 While current focus is on the Openreach build, future opportunities include partnerships for fiber builds beyond Openreach's 30 million premises target and retail acquisition targets.