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* Seeking partner to extend fibre build out
* Agrees pension funding deal
* COVID drives 7% fall in full-year revenue
* Sees broadly flat revenue this year
(Adds further details on pension, results)
By Paul Sandle
LONDON, May 13 (Reuters) - BT said on Thursday it
would extend its full-fibre broadband network to 25 million
premises by the end of 2026, aiming to fund an additional 5
million homes and businesses through a joint venture with other
parties.
BT, Britain's biggest broadband and mobile provider, set the
new target as it reported a 7% fall in revenue and a 6% fall in
adjusted earnings for the year to end-March, reflecting the
impact of COVID-19.
Chief Executive Philip Jansen said changes in regulation and
tax, along with a new agreement on the company's pension
payments, had cleared the way to raise its fibre ambitions.
"After a number of years of tough work, and as we look to
build back better from the pandemic, we're now pivoting to
consistent and predictable growth," he said.
Jansen has cast BT as the national champion that can build
the broadband network Britain needs to drive an economic
recovery, and he has focused on laying the foundations for the
billions of pounds of investment needed.
As well as seeking a partner in fibre, it said last month it
was in talks about selling a stake in BT Sport, a move that
could relieve the pressure of buying expensive rights.
COVID-19 has also been a setback for the company despite
soaring demand for fast broadband.
It said the pandemic was behind the fall in revenue to 21.33
billion pounds ($30 billion), just shy of analyst forecasts, and
the hit to adjusted earnings, which also came in slightly below
market expectations at 7.42 billion pounds.
It said adjusted revenue would be broadly flat this year,
while earnings would be between 7.5 billion and 7.7 billion
pounds.
BT said it had struck a new deal for its pension, which at
7.98 billion pounds is one of the biggest in the country.
Some 2 billion pounds of deficit will be met through an
asset backed funding arrangement secured against its EE mobile
business, while the balance will be met over 10 years, starting
with an annual cash contribution of 900 million pounds.
($1 = 0.7118 pounds)
(Reporting by Paul Sandle; Editing by Kate Holton, Michael
Holden and Guy Faulconbridge)
