BT Group’s cost transformation strategy is helping to maintain EBITDA growth despite a 4% decline in group sales. Openreach revenue remains flat due to the loss of lower-speed lines, impacting overall performance. The UK broadband market remains competitive, with BT facing challenges in retaining customers and growing revenue.

Despite challenges, BT Group’s shares are considered fairly valued with a GBX 200 fair value estimate. Forecasted EBITDA growth for Openreach remains conservative, with potential downside risk if market conditions worsen. The company is expected to lose low-speed broadband lines while gaining FTTP subscribers, resulting in flat revenue growth.

Read more at Morningstar: BT Earnings: Cost Plan Buys Some Time, But This Can’t Go On Forever