We have made good progress this year in a number of areas and delivered strong financial results. We have grown profits and dividends while investing in the future of our business.

Who we are and what we do

We believe in the power of communication to make a better world. We bring together the best networks and technology with the expertise of our people. Making connections, creating new possibilities. This way businesses can grow, communities can flourish, and individuals can get more out of life. That’s the difference we make, every day.

A globe

We are one of the world’s leading communications services companies

A family

Every day we touch the lives of millions of people, helping them communicate, do business and be entertained and informed

BT Broadband logo

We are the leading provider of consumer voice and broadband services in the UK

A city

We provide managed networked IT services for many of the largest companies in the world

Three arrows

In the UK we are delivering one of the fastest rollouts of fibre broadband in the world

A satellite dish

We are Europe’s largest telecoms services wholesaler by revenue

Our strategy and business model

Our aim is to deliver value to shareholders and customers by
making BT a better business with a better future.

There are three foundations which build on one another to make BT a better business:
Customer service delivery, Cost transformation and Investing for the future.

Customer
service delivery

The better we serve our customers, the less time and money we need to spend on putting things right.

Cost
transformation

By transforming
our costs we create opportunities for investing in our future.

Investing
for the future

By investing in our six strategic priorities we aim to grow the value
of our business.

A better
business

A better
future

Our business model is built around the three foundations of our strategy.
It supports our aim to deliver value to our shareholders and customers.

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What sets us apart

  • – Our people
  • – Our brand
  • – Our networks
  • – Our technology
  • – Our financial strength

Customer
service delivery

The better we serve our customers, the less time and money we need to spend on putting things right.

Cost
transformation

By transforming our costs we create opportunities for investing in our future.

Investing
for the future

By investing in our six strategic priorities we aim to grow the value of our business.

Delivering value

Making connections, creating new possibilities

We enhance the things that set us apart

Society

Customers

Shareholders

We make money by selling our services in the UK and around the world through our customer-facing lines of business. We sell our services through a range of channels including online, contact centres and desk or field-based account managers. Our revenue is largely subscription or contract based. People, households and small and medium-sized enterprises (SMEs) pay for standalone or bundled services monthly, quarterly or annually (typically on 12-24 month contracts). Large corporate and public sector customers typically buy managed networked IT services, usually on contracts spanning several years. Contract durations with our wholesale customers range from just one month for regulated products, to five years or more for major managed services deals.

What sets us apart

The communications market is very competitive, particularly in the UK. We never forget that customers have a choice. How do we stand out from our competitors? We have a unique combination of people, brand, networks and technology.

And we have the financial strength to make long-term investments in the future of our business.

Key activities

The three foundations of our strategy – Customer service delivery, Cost transformation, and Investing for the future – are at the heart of the way we run our business.

Improving our customer service helps our customers but also allows us to cut the cost of serving them. By reducing the number of times things go wrong, we spend less time and money putting things right. This reinforces our financial strength and helps us to invest in the things that set us apart. A virtuous circle.

The value that we create

The cash that we generate from our customers and from our cost transformation activities helps us reward our shareholders. And it means we can fulfil our financial obligations to our people, the pension scheme, suppliers and lenders.

What we do matters. We make connections, create new possiblilites and deliver value. We help millions of people communicate, be entertained, do business and live their lives. We see more and more demand for our products and services because they play such an integral role in modern life. We are confident our business model is sustainable and that we will be able to deliver value today and in the long-term.

Financial highlights

Our performance this year

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Driving broadband-based consumer services

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Being the ‘Brand for Business’ for UK SMEs

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BT Global Services – a global leader

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The wholesaler of choice

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The best network provider

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A responsible and sustainable business leader

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The wholesaler of choice

Female engineer in a BT data centre looking through server machines BT Wholesale order intake - Year ended 31 March

We want to be the wholesaler of choice in the UK and international telecoms services markets. We are already Europe’s largest wholesaler.

We are supporting the launch of 4G services in the UK by investing in backhaul capacity at key mobile base station sites. Our Ethernet service is available at around 15,000 base stations, making us the market leader. IP Exchange, which simplifies global voice over IP interconnect, saw a 90% increase in minutes carried in the year with revenue exceeding £100m.

BT Wholesale more than doubled its order book compared with the prior year. Both underlying revenue excluding transit and EBITDA saw an improved trend over the year, helped by growth in managed network services.

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Being the ‘Brand for Business’ for UK SMEs

Smiling, Asian professional female business woman talking on her mobile while working on her laptop Proportion of BT Business revenue from IT services - Year ended 31 March

We want to be the first choice for SMEs for all their fixed and mobile communications and IT needs. We have around 1m customers and a clear leading position in fixed-voice and broadband services. We are seeing good growth in fibre broadband.

We are growing our market share in IT services, have introduced a new range of cloud IT services and acquired Tikit, one of the largest independent suppliers of technology services to legal and accountancy firms.

We grew our mobile customer base and launched a number of new mobile handsets and tablets. We will develop converged fixed and mobile services building on our investment in 4G spectrum to offer customers the best possible connection wherever they are.

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BT Global Services – a global leader

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List of companies that BT serve

We consolidated our position as a global leader in the market for managed network IT services. We service the needs of around 7,000 large corporate and public sector customers in more than 170 countries worldwide.

We combine products and services with industy-specific solutions and consulting expertise. We provide services globally and deliver locally in the countries in which our customers operate.

We have focused on improving customer service and made investments to extend our global capabilities.

Underlying revenue excluding transit declined by 6% in the year reflecting the tough conditions in Europe and the financial services sector. We have more to do to improve our financial performance and have intensified our efforts to transform our cost base.

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A responsible and sustainable business leader

The Prime Minister, David Cameron standing with male and female volunteers from BT on Red Nose Day. The volunteers all wear red noses and there is a BT Red Nose Day Challendge sign in the background.
Annualised benefits from energy savings - Year ended 31 March

Being a responsible and sustainable business leader is at the heart of our strategy. Beyond driving sustainable practices in our own operations, we recognise the broader value we can deliver to society.

Our Better Future programme is our promise to use the power of communication to improve lives and ways of doing business. This year we set three goals to achieve by 2020 to shape our Better Future vision. They are built on what we do best – bringing together our nextworks and technology with the expertise of our people to make a better world. Our goals are underpinned by our commitment to run our business with high ethical, environmental and supply chain standards, adding value and saving costs.

This year we have again reduced our energy use. We also helped to raise millions for charity. We made progress against five of our seven sustainability performance indicators but the impact of the poor weather meant that we did not achieve two of them: our customer service and sickness absence targets.

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Driving broadband-based consumer services

Close up of a male hand holding a mobile device. On the screen of the device is the BT Smart Talk app.
BT's retail broadband market share - At 31 March

We have again grown our market share of broadband, helped by demand for bundled products and BT Infinity, our fibre-based service. We now have around 1.3m retail fibre customers, 19% of our broadband base.

New unlimited broadband offerings, free cloud storage, our SmartTalk app for smartphones and the largest in-country wi-fi network in the world (with over five million hotspots) set us apart from the competition.

TV and broadband are increasingly complementary as viewing becomes more interactive. We have secured some great content for our BT Sport channels including Premier League football, Premiership rugby and women’s tennis. We launched YouView from BT and Extra TV (our package of 22 TV channels) and grew our TV customer base by 15%.

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The best network provider

Female Openreach engineer, kneeling down working on a handful of colourful wires with pliers. She is wearing a hig visibility vest and there are Openreach hoardings in the background.
Total premises passed with fibre - Year ended 31 March

Fibre is our future. We brought fibre broadband to an additional 120,000 premises on average each week of the year. Our fibre broadband network now passes more than 15m homes and businesses, both in cities and rural areas, and take-up is growing strongly. More than 1.5m now enjoy the benefits of faster speeds.

We added 834,000 users to our broadband network in the year – four out of five broadband users in the UK are now on our network. Despite the challenges of some of the wettest weather on record, we grew the total number of physical lines by 54,000.

Revenue in Openreach decreased by 1% in the year as the impact of regulatory price changes more than offset the growth in fibre broadband and Ethernet.

Customer case studies

Play video The opening ceremony of the London 2012 Olympic Games. View from inside the stadium, showing an ethnic woman's hand

London 2012 – the most connected Games ever

As official communications services partner of the London 2012 Olympic and Paralympic Games, we shouldered a tremendous responsibility.

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London 2012 – the most connected Games ever

Official communications services partner of London 2012

The opening ceremony of the London 2012 Olympic Games. View from inside the stadium, showing an ethnic woman's hand
Watch London 2012 film

As official communications services provider for the London 2012 Olympic and Paralympic Games, we shouldered a tremendous responsibility. Our communications services had to meet the needs of the event organisers, competing athletes, the global media and billions of spectators worldwide.

Our single communications network took in 94 locations across the UK. It carried every official photograph and sports report and every visit to the London 2012 Games website and supported millions of calls, emails, text messages and tweets.

A BT fibre-based network delivered 5,000 hours of live TV coverage of the Games to the International Broadcast Centre for onward transmission to broadcasters.

During London 2012, a 1,000-strong BT team guaranteed flawless communications for the Games. Nothing in our history has been a stronger test of our ability to manage and deliver large and complex projects. We delivered with the eyes of the world upon us.

London staged one of the greatest Olympic and Paralympic Games ever. Beyond the statistics, technology had a profound effect on how people interacted with the Games, and none of that would have been possible without BT, whose commitment to these Games was quite simply spectacular.

Gerry Pennell
Chief Information Officer, London Organising Committee of the Olympic and Paralympic Games (LOCOG)

Driving broadband-based consumer services

Sidestepping international roaming charges with BT SmartTalk – We’re always trying to help our millions of consumer customers save money.

Download the SmartTalk app
Middle aged business man sitting in a café, looking at his mobile device in his hand while working on his laptop using BT Wi-fi.
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Driving broadband-based consumer services

Sidestepping international roaming charges with BT SmartTalk

We’re always trying to help our millions of consumer customers save money. One of our latest innovations is BT SmartTalk. It’s an app that lets them make phone calls from their smartphone – wherever they are in the world – but which are billed as if calling from their BT home phone. Dan Hippey from Milton Keynes loves it:

I do a lot of international travelling. BT SmartTalk is really convenient and saves me money too

Dan Hippey, BT broadband customer, Milton Keynes

Customers download the app from iTunes or Android stores. It runs on any mobile connection, but works best over wi-fi. And with access to more than eight million free wi-fi hotspots worldwide, that means BT broadband customers like Dan can sidestep international roaming charges when they phone from abroad.

Download the SmartTalk app online at www.bt.com/smarttalk or text SMART to 81192

Being the ‘Brand for Business’ for UK SMEs

Superfast broadband helps small businesses do big business – Cornwall-based ARCOL UK is one of around one million small and medium-sized enterprises who choose us for their communications and IT.

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Being the ‘Brand for Business’ for UK SMEs

Superfast broadband helps small business do big business

Two middle aged men wearing shirts and hoodies, standing in a factory looking at a tablet device. There is a BT business hub in the foreground.
Find out more at BT business

Cornwall-based ARCOL UK is one of around one million small and medium-sized enterprises who choose us for their communications and IT.

They are the only UK manufacturer of a certain type of electronic resistor – which means their products are in demand across the world and are even used by the US space agency NASA.

With 80% of sales outside the UK, ARCOL needs superfast data transfer speeds and a rock-solid connection round the clock. Our fibre-to-the-premises broadband gives them just that, with speeds of more than 300Mbps.

We need the constant ability to reach out to our customers, whether the medium is IP telephony, video conferencing or online chat. The more avenues we have to cement these important relationships, the better. Superfast broadband has given us the type of connection we need to thrive.

Alun Morgan, Technical Director, ARCOL UK Ltd

Those superfast speeds are also helping ARCOL cut costs and free up its 43 staff to work from home without compromising the performance and professionalism it prides itself on. This is helping this small business act more like a big business.

BT Global Services – a global leader

NYSE makes every millisecond count with BT – BT Global Services works with large corporate and public sector customers in more than 170 countries.

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BT Global Services – a global leader

NYSE makes every millisecond count with BT

Aerial view of the New York Stock Exchange
Watch Ian Livingston at the NYSE

BT Global Services works with large corporate and public sector customers in more than 170 countries. The New York Stock Exchange is one of them.

With multi-million deals won or lost in milliseconds, it’s a high pressure and exacting environment. So they, and many member firms on the trading floor, rely on BT’s communications technology to interact, collaborate and trade securely and effectively.

Harry Weber of the New York Stock Exchange, said: “With BT, I get access to a whole team of experts, all backed by great project management.”

As a long-term partner, BT has an excellent track record with the NYSE. Overall, I believe that BT provides us with leading-edge and reliable technology at a competitive price.

Harry Weber, Managing Director – Trading Services and Telecommunications, NYSE Euronext

Find out more at www.globalservices.bt.com

The wholesaler of choice

Communication providers’ data-hungry customers depend on BT – UK mobile data traffic will grow by more than 400% in the next three years, said research firm IHS in January 2013.

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The wholesaler of choice

Communication providers’ data-hungry customers depend on BT

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Find out more at BT Wholesale

UK mobile data traffic will grow by more than 400% in the next three years, said research firm IHS in January 2013. That growth is driven by the increased popularity of hungrier apps on smartphones and tablets. To handle this explosion in traffic, mobile network operators need high-quality transmission and backhaul network solutions.

For the last four years, we have helped UK mobile operators upgrade their backhaul networks, providing better coverage and more capacity at lower cost. And we continue to expand our vast state-of-the-art network and Mobile Ethernet Access Service which now links around 15,000 UK mobile base stations.

Now we are helping them to exploit 4G for their customers. And we are developing wholesale managed network solutions to help them improve customer service without spending lots of money on their own infrastructure.

EE is the first mobile operator to bring 4G services to the UK. BT Wholesale played an invaluable role in helping us reach this significant achievement.

Fotis Karonis, CTO of EE

The best network provider

Lighting up the four corners of the UK.

Openreach van driving through the green Yorkshire countryside
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The best network provider

Lighting up the four corners of the UK

Ainderby Steeple is a historic village in North Yorkshire. At the end of 2012, it was one of the first communities to benefit from the fibre roll-out programme in the region. Local businesses and residents are enjoying significantly quicker internet and download speeds as a result.

In fact, BT has invested more in fibre broadband (without public support) than any company in the world. We’re going as fast as we can; and we think that by bidding for public funding for harder-to-reach areas, fibre broadband will light up more than 90% of UK premises. From Carmarthenshire to the Isles of Sicily, from Norfolk to North Yorkshire (including Ainderby Steeple), the benefits of fibre are being experienced far and wide.

High-speed communications have never been more vital in order to succeed in an ever more competitive and connected world.

Timothy Kirkhope, MEP for Yorkshire and the Humber

A responsible and sustainable business leader

Cutting carbon emissions and costs at BT Fleet.

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A responsible and sustainable business leader

Cutting carbon emissions and costs at BT Fleet

A young female mechanic with a male mechanic from BT Fleet, standing in a garage looking at a large tablet device.
View our 2013 Better Future Report

Our commercial fleet is the second largest in the UK. As part of our Better Future strategy, we are reducing the environmental impact of those 26,000 vehicles.

First we did a detailed analysis of how BT Fleet vehicles are driven, then we recoded all those vehicles’ engine management units to make them more fuel-efficient.

It is one of the largest programmes of its kind ever undertaken by any company in Europe. It will slash our fleet’s CO2 emissions by 25% (equivalent to 25,000 tonnes per year) as well as cutting fuel costs every year.

And now we know it works, we will be launching the service commercially – to help other fleets cut carbon emissions and costs. We believe our services must be a force for good for business, people and planet.

This is one of the largest programmes of its kind ever undertaken by any company in Europe.

Duncan Webb, Commercial Director, BT fleet