Profits tumbled for BT as the FTSE 100 firm feels the sting of inflation and ongoing strike action.
In its half year results, BT said reported profit before tax was £0.8bn for the half year, down 18 per cent.
Revenue climbed a humble one per cent to £10.4bn, due to growth in Consumer and Openreach partially offset by legacy declines in large corporate customers in Enterprise, lower equipment sales and the impact of selling BT Sport to Discovery earlier this year.
The telcos giant continues to grapple with strike action, which it revealed had started to impact services.
Openreach broadband base down was down 89,000 in second quarter of this year, with around 40,000 directly impacted by industrial action.
Chief Executive Philip Jansen said the company remains at the “front foot in these turbulent times”.
Whilst he said the current strategy was working to drive growth, he said: “Given the current high inflationary environment, including significantly increased energy prices, we need to take additional action on our costs to maintain the cash flow needed to support our network investments,”
BT boosted its cost savings target from £2.5bn to £3.0bn by the end of FY25.
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