BT Group trading update failed to inspire much investor confidence

BT Group (LSE:BT.A) shares finished Thursday nearly 1% lower, after the telecoms blue-chip told investors that it had remained on track to deliver its financial outlook for the year.

Also, it said it was sticking with its existing cash flow targets up until 2030.

"We've made a solid start to the year, with excellent growth in both fibre build and connections, and increased EBITDA,” BT chief executive Allison Kirkby said in a trading updated for its first quarter, ahead of half-year results due in November.

“Our ongoing cost transformation contributed to EBITDA growth, and more than offset the expected revenue declines in Consumer and Business in the quarter.

“There is much more to do to simplify BT Group and deliver for our customers. We remain on track to deliver our financial outlook for this year.”

BT said tight cost controls helped increase earnings in the first quarter, despite a fall in revenue that was in line with expectations.

Looking ahead, it plans to double free cash flow over the next five years.

BT, meanwhile, continues to roll out fibre at apace, but associated increases in revenue have not matched kept up with the rollout.

In London, BT shares closed 1.1p or 0.8% lower at 138.65p.