BT loses broadband customers to rivals and sheds another 5,000 jobs

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “BT may have signed up for the stars, but today’s results failed to shine.

“These numbers were meant to steady nerves, with shares down around 20 per cent from July’s peak, but instead exposed cracks in its core markets.

“Guidance for the year stayed intact, yet the rise in broadband line losses (242,000 in the second quarter) points to a market under real pressure as rivals step up their game.

“The consumer business was the main drag, pulling revenue lower despite strong growth in newer fibre broadband connections (line losses were concentrated in older copper services), while the business division surprised with a rare profit boost.

“Cash flow was the real disappointment, falling well short as spending and some other moving parts weighed more than expected.

“Against this backdrop, the new deal with Starlink feels less like bold innovation and more like a tactical move to ease pressure on rural coverage.

“Expectations were low, and early trading suggests markets are taking a glass-half-full approach, but this update still feels softer than hoped.”