contentImage

Results

For each quarter’s results you can download the press release, slides, KPIs, transcript and watch the webcast. After each quarter’s results we gather analyst consensus, which can also be found in the same section.

 KPIs 5 year view PDF Investor meeting slide pack - November & December 2016

2016/17

Update on investigation into BT's Italian business and on BT Group outlook
News release
News release

Webcast
Webcast

Audio
Audio file

Second quarter and half year to 30 September 2016

Financial highlights for the quarter:

  • Reported revenue up 35%, and growth in underlying revenue excluding transit adjusted for the acquisition of EE up 1.1%
  • Reported earnings per share down 10%, adjusted earnings per share up 4%
  • Underlying EBITDA adjusted for the acquisition of EE up 0.9%
  • Non-cash specific item charge of £145m following initial investigation into inappropriate management behaviour in BT Italia
  • Net cash inflow from operating activities of £1,734m, up £489m and normalised free cash flow of £894m, up £325m reflects timing of receipts and payments within the year; net debt £9,573m
  • Interim dividend 4.85p, up 10%
  • Outlook unchanged

Operational highlights for the quarter:

  • Mobile pay monthly net additions of 280,000, with sustained low churn
  • 65% retail share of total broadband net additions at 76,000, with retail fibre broadband net additions at 216,000
  • Openreach achieved 440,000 fibre broadband net additions, including >50% from external service providers for first time
  • Over 1,000 new UK-based customer service roles in Consumer in the second half to answer 90% of calls in the UK
  • Good progress clearing long tail of outstanding Ethernet orders in Openreach
  • Openreach ahead on all 60 minimum service levels and on track to halve missed appointments this year

Gavin Patterson, Chief Executive, commenting on the results, said:

“This is a positive set of results, both operationally and financially, and we remain on track to achieve our full year outlook. We’ve made good progress on the integration of EE and the delivery of our synergy targets. Our consumer facing lines of business have performed well, but in the enterprise space, UK public sector continues to be a challenging market. Across the group, we continue to drive cost reduction and productivity improvements. Customer experience remains a key priority, and we’re stepping up our investments in the second half of the year. And we’ll continue to invest in our ultrafast and 4G plans in 2017 and beyond. Ofcom’s consultation on the Digital Communications Review closed earlier this month; we’ve submitted our response and will continue to engage with Ofcom to reach the best outcome for the UK.”

News release
Q2 release

Webcast
Q2 webcast
Q2 audio

KPIs
Q2 KPIs

Slides
Q2 slides

Consensus
Pre Q3 2016-17 consensus

First quarter to 30 June 2016

Key points for the quarter: 

  • Growth in underlying revenue excluding transit on a pro forma basis up 0.4%
  • Underlying EBITDA on a pro forma basis down 2% reflecting our launch of BT Mobile handsets
  • 79% share of broadband net additions
  • Mobile pay monthly net additions of 244,000, with record low EE churn
  • Significant governance changes planned to further increase the independence and transparency of Openreach

Gavin Patterson, Chief Executive, commenting on the results, said: 

“We’ve made a good start to the year, with growth in revenue and strong cash flow. We’re on track to deliver our full year outlook.

“Our integration of EE is progressing well, alongside our business reorganisation that took effect on 1 April. EE performed strongly, both financially and commercially, and our customers are seeing the initial benefits of our acquisition with BT Sport now available to EE pay monthly customers. We remain focused on improving customer experience and 100% of EE pay monthly calls are now handled in UK and Ireland contact centres. We’ve reduced engineer missed appointments by more than a third since last quarter and Openreach is again ahead on all 60 minimum service levels set by Ofcom.

“Fibre broadband is available to well over 25m premises and take-up remains strong. At a retail level, we performed well achieving a 79% share of broadband net adds in the quarter. We were pleased to renew our FA Cup rights during the quarter and we look forward to showing more games from the Premier League at a much better time slot, starting in two weeks. Our customers can also look forward to all the exclusive live action from the UEFA Champions League and UEFA Europa League once again this year.

“Our investment plans remain central to our future and so we will be rolling out further fibre in the coming months, as well as 4G through the Emergency Services Network contract. Our aim is to make these services as universally available as we can, whilst also deploying a new generation of ultrafast broadband. Such investment requires regulatory clarity, particularly in these uncertain times.

“Having listened to Ofcom and industry, we have set out our proposals for greater independence and transparency for Openreach. Our proposals can form the basis for a fair, proportionate and sustainable regulatory settlement and we believe they can also enable Ofcom to bring its Digital Communications Review to a speedier conclusion. We will continue to engage with Ofcom over the coming months.”

News release
Q1 release

Webcast
Q1 webcast
Q1 audio

KPIs
Q1 KPIs

Slides
Q1 slides

Consensus
Pre Q2 2016-17 consensus

2015/16

Restated historical financial information June 2016
Restated financials
News release – restated historical financials June 2016
Restated historical financials June 2016

Pro forma
Pro forma historical financials June 2016

Fourth quarter and year to 31 March 2016

Key points for the fourth quarter:

  • Our acquisition of EE completed on 29 January 2016
  • Underlying revenue excluding transit up 1.3%
  • Underlying operating costs excluding transit up 2% primarily reflecting our investment in BT Sport Europe
  • EBITDA up 14% including £261m from EE
  • Openreach achieved 415,000 fibre broadband net additions with other service providers connecting 48% of these
  • Combined BT and EE broadband net additions market share of 81%

Key points for the year:

  • Underlying revenue excluding transit up 2.0%, our best performance for more than seven years
  • EBITDA of £6,580m, up 5%, including £261m from EE
  • Earnings per share up 5%
  • Normalised free cash flow of £3,098m, up 9%, including £261m from EE
  • Proposed final dividend of 9.6p, up 13%, giving a full year dividend of 14.0p, also up 13%
  • BT Consumer TV customer base grew by 28% to 1.5m
  • Fibre broadband available to more than 25m premises

Gavin Patterson, Chief Executive, commenting on the results, said:

“This has been a landmark year for BT. We’ve completed our acquisition of EE, the UK’s best 4G mobile network provider, we’ve passed more than 25m premises with fibre and we’ve also delivered a strong financial performance. We’ve met our outlook with our main revenue measure up 2.0%, the best performance for more than seven years. Our profit before tax was up a healthy 9%.

“Customers want to be online wherever they are and we will be there for them. Our multi-billion pound investment plans will see both fibre and 4G reach 95 per cent of the UK and we won't stop there. The UK is a digital leader and our investment in ultrafast broadband will help it stay ahead.

“The integration of EE is going well and we now see the opportunity to deliver more synergies than we originally expected, and at a lower cost. And we’re reorganising our business to better serve customers both in the UK and internationally.

“We’ve invested across the business and are seeing good results. Our BT Sport audiences are up 45 per cent this year following the launch of UEFA Champions League and UEFA Europa League content. BT Mobile has done well since its launch, building a customer base of over 400,000. And in the business market, we’ve seen very strong demand for our cyber security expertise with our security business growing by 24 per cent.

“Customers are benefiting from our investments but we plan to do more when it comes to service, to meet customers’ rising expectations. That’s why Openreach is tackling missed appointments, why BT Consumer will be upgrading service levels to next day repair and why we’ve hired 900 engineers. We’ve also recruited more than 900 extra contact centre staff. This will enable us to return EE and BT Consumer contact centre work to the UK.

“Our strong overall performance for the year is reflected in our full year dividend, which is up 13%. Our results and the investments we’re making position us well to continue to grow in the coming years. In light of our confidence we are setting out financial and dividend guidance for the next two years." 

News release
Q4 release

Webcast
Q4 webcast
Q4 audio
Q4 transcript

KPIs
Q4 KPIs

Slides
Slides for session 1 – Results and group strategy
Slides for session 2 – Lines of Business
(Cost transformation & EE integration, TSO,
Openreach, Wholesale & Ventures)
Slides for session 3 – Lines of Business
(Consumer, EE, Global Services, Business & Public Sector)

Consensus
Pre Q1 2016-17 consensus

EE FY 2015 results and Pro Forma for combined BT and EE group
News release
EE FY2015 results press release

Pro Forma
Pro forma historic financials

Third quarter to 31 December 2015

Key points for the third quarter:

  • Underlying revenue excluding transit up 4.7%, our best result for more than seven years
  • EBITDA up 3%
  • Record Openreach fibre broadband net additions of 494,000
  • 71% share of UK broadband market growth
  • Consumer line growth of 6,000; the first increase in over a decade
  • Now more than 300,000 BT Mobile customers
  • 2015/16 outlook for stand-alone BT: EBITDA and cash flow reaffirmed; revenue growth expected to be 1% to 2%

Gavin Patterson, Chief Executive, commenting on the results, said:

“This is a strong set of results with good numbers across the board. Revenue was up 4.7% this quarter, our best result for more than seven years. We are making good progress towards our goal of sustainable profitable revenue growth.

“BT Consumer had a standout quarter, increasing its overall line base for the first time in well over a decade and capturing 71% of new broadband customers. Good customer growth in broadband, TV and mobile helped to grow ARPU by 7%. Customers like what we’re offering, whether that’s superfast broadband, Champions League football or mobile data bundles. BT Global Services also did well with good revenue growth in continental Europe and Asia.

“These are exciting times at BT. We have completed our acquisition of EE, the UK’s best mobile network provider, and are confident that we’ll deliver the anticipated cost and revenue synergies. EE will become a separate consumer-focused line of business within the group. We’re also creating a new organisation to better serve our business and public sector customers in the UK, combining BT Business with EE’s business division and parts of BT Global Services’ UK operations. BT Global Services will focus on serving multinational companies and major customers outside the UK.

“Service continues to be a priority. Our engineers have worked tirelessly over the festive period to restore service after some of the worst flooding on record. We’re investing to improve service and are creating a further 1,000 contact centre jobs in the UK, to help us meet our commitment to answer more than 80% of consumer customer calls from within the UK by the end of this year.

“Fibre is underpinning the growth at Openreach with almost half a million premises taking up the service this quarter via dozens of service providers. The fibre market is highly competitive and growing all the time, which is great news for the UK economy. Our superfast fibre broadband network is available to well over 24m homes and businesses. We will help take fibre coverage to 95% of the country by the end of 2017, with plans to go even further. Our G.fast trials are progressing well. The UK is poised to take the important journey from superfast to ultrafast broadband and BT is well placed to lead the charge.”

News release
Q3 release
New structure press release

Webcast
Q3 webcast
Q3 audio

KPIs
Q3 KPIs

Slides
Q3 slides

Consensus
Pre Q4 2015-16 consensus

Second quarter and half year to 30 September 2015

Key points for the second quarter:

  • Growth in underlying revenue excluding transit, up 2.0%
  • EBITDA down 1% reflecting our investment in BT Sport Europe
  • 106,000 BT TV net additions, our best ever performance
  • Strong order book across the group
  • Interim dividend of 4.4p, up 13%

Gavin Patterson, Chief Executive, commenting on the results, said:

“We’ve delivered a good financial performance with revenue up 2% this quarter.

“Fibre broadband is a success story and we continue to invest heavily to help the UK remain a broadband leader among major European nations. Our open access fibre network now passes 24 million premises and we are not stopping there. We want to get fibre broadband to as many people as possible and we are also pushing ahead with our plans to get ultrafast broadband to ten million premises by the end of 2020. Market-wide demand for fibre remains strong with fibre net additions up 21% as we hit the five million milestone for homes and businesses connected.

“We’ve seen good demand for BT Sport Europe and this has helped us add a record number of BT TV customers in the quarter. Its contribution has been better than we expected, helping drive a 7% increase in BT Consumer revenue. Mobile is another growth area and I am pleased our consumer customer base now stands at more than 200,000. And I am also pleased that yesterday, the Competition and Markets Authority provisionally approved our planned acquisition of EE, unconditionally without remedies.

“We are making step changes to improve customer service, as part of our group-wide programme. Openreach’s recently launched ‘View my Engineer’ service is going down well. The 3,000 engineers we hired in the last 18 months are helping us fix faults faster and provide new services sooner. We have also created more than 1,000 new contact centre jobs in the UK, with hundreds more to come, to meet our 2016 commitment for more than 80% of consumer customer calls to be answered in the UK. And we have plans to go even further in years to come.

“Our strategy is delivering and our results show we’re on track to achieve our outlook for the year.”

News release
Q2 release

Webcast
Q2 video
Q2 audio
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 slides

Consensus
Pre Q3 2015-16 consensus

First quarter to 30 June 2015

Key points for the quarter:

  • Underlying revenue excluding transit was flat, an improvement on the 1.3% decline last quarter
  • Underlying operating costs excluding transit down 1%
  • EBITDA up 1% and earnings per share up 3%
  • Superfast fibre broadband available to more than 23m premises, around 80% of the UK
  • 20% superfast fibre broadband take-up; new base-case assumption of reaching 28% penetration

Gavin Patterson, Chief Executive, commenting on the results, said:

“This is an exciting time at BT. We continue to invest heavily in our superfast fibre broadband network. It now reaches around 80 per cent of all UK premises and we will work with government to help take fibre broadband to 95% of the country by the end of 2017. Our technical trials of ultrafast broadband using G.fast are progressing well; we’re on target to start large-scale customer trials this summer.

“Our mobile plans have got off to a good start with more than 100,000 consumer mobile customers signed up in the first three months. We’re also looking forward to completing our acquisition of EE, which will allow us to create a true UK digital champion, providing customers with greater choice and value and helping to deliver the UK’s connected future.

“We’re launching BT Sport Europe in the next few days, the new home of UEFA Champions League football, which is free for our BT TV customers. We are also leading the way on Ultra HD TV. Our BT Sport Ultra HD channel will be the first live sports channel in Europe offering picture quality four times that of normal high definition.

“We have also invested further in improving customer service and Openreach is running ahead of all 60 minimum service levels set by Ofcom for this year. And we are engaging with Ofcom as part of its Strategic Review of Digital Communications which offers scope for deregulation and the potential to create a more level playing field in pay-TV.

“The investments we are making in our business and customer service are building a strong platform for growth. And our financial results show we’re on track to achieve our outlook for the full year.”

News release
Q1 release

Webcast
Q1 webcast
Q1 audio
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 slides

Consensus
Pre Q2 2015-16 consensus

2014/15

Fourth quarter and year to 31 March 2015

Key points for the fourth quarter:

  • Underlying revenue excluding transit down 1.3%
  • Underlying operating costs excluding transit down 6%
  • EBITDA grew 7%, partly helped by the settlement of ladder pricing arrangements
  • Our best ever quarter for Openreach fibre broadband net connections of 455,000, up 31%
  • Agreed definitive terms for proposed acquisition of mobile operator EE
  • Secured content for FA Premier League to 2018/19 and Aviva Premiership Rugby to 2020/21
  • Launched great value mobile offerings into the consumer market
  • 2014 triennial pension funding valuation agreed in January

Key points for the year: 

  • Results in line with or ahead of our outlook for the year
  • Underlying revenue excluding transit down 0.4%
  • Underlying operating costs excluding transit down 2%
  • EBITDA of £6,271m, up 3%
  • Earnings per share up 12%
  • Normalised free cash flow of £2,830m, up 16%
  • Net debt at £5,119m down £1,909m including the benefit of our £1.0bn share placing
  • Proposed final dividend of 8.5p, up 13%, giving a full year dividend of 12.4p, up 14%
Gavin Patterson, Chief Executive, commenting on the results, said:

“It’s been a ground-breaking year for BT, in which we’ve made some key decisions and announced some major investments to underpin the future growth of the business. Profit before tax and free cash flow have both grown strongly and we have delivered or beaten the outlook we set at the start of the year.

“Our superfast broadband network now passes more than three-quarters of the UK and we’ve announced plans to upgrade to ultrafast. This will be another multi-year investment by Openreach and is the right thing for both BT and the UK, providing even faster speeds in an already competitive market. We delivered our best ever performance for fibre connections in the fourth quarter with Openreach adding almost half a million premises to our network. Our retail business delivered a record-breaking 266,000 of these connections.

“Shareholders approved our proposed £12.5 billion acquisition of EE last week. While we await regulatory approval, we have pushed ahead with our own mobility plans, launching our great value BT Mobile consumer service in March.

“Our BT Sport TV channels are now in more than 5.2 million homes, with the customer base growing again in the quarter. We’re pleased to have secured FA Premier League football rights for a further three years, and an extension with Aviva Premiership Rugby for four more years. With exclusive live football from the UEFA Champions League and UEFA Europa League, we’ll be showing even more top sporting action from this summer.

“For our business customers, we launched a number of innovative services this year including BT Assure Threat Defence, BT One Phone and BT Cloud Voice. And while in the UK public sector trading remains tough, we continue to see good growth in Asia and the Middle East.

“We will continue to deliver on our investments and improve the service we provide to our customers. This year we recruited 2,500 new engineers and more than 500 new agents into our UK contact centres, with over 500 new apprentices across the group. Each of our customer-facing lines of business made improvements in service this year. We have increased the speed of service delivery, repaired faults faster and fixed more customer issues first time. But we recognise we’re not yet where we want to be and this will continue to be a priority for us.

“We made further progress with transforming our costs, contributing to a 6% decline in operating costs4 in the fourth quarter. We’ve reorganised our business, increased productivity and streamlined our processes.

“Our performance during the year is reflected in our full year dividend, which is up 14%. Our results and the investments we are making position us well for the future and enable us to increase our free cash flow outlook for the coming year.”
News release
Q4 release

Webcast
Q4 video
Q4 audio
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 slides

Infographic
EE proposed deal - infographic

Consensus
Pre Q1 2015-16 consensus

Third quarter to 31 December 2014

Key points for the third quarter:

  • Underlying revenue excluding transit down 1%
  • Underlying operating costs excluding transit down 3% reflecting the benefit of our cost transformation activities
  • EBITDA up 2% and earnings per share up 10%
  • Normalised free cash flow of £908m, up 64%
  • Outlook reaffirmed
Gavin Patterson, Chief Executive, commenting on the results, said:

“This quarter we have delivered good growth in profit before tax and strong free cash flow.

“Openreach achieved the highest growth in the number of landlines on record. It was also our best ever quarter for fibre broadband net additions. All the major communications providers are responding to the strong market demand for fibre broadband, helping to drive take-up in what is already a very competitive market.

“Our superfast fibre broadband network now covers around three-quarters of the UK. BT has been at the forefront of fibre innovation and investment, from which all communications providers benefit. We aim to keep it that way. So today we’re announcing large-scale pilots this summer of ultrafast broadband with G.fast. We now think we can deploy this technology at scale which will enable us to deliver ultrafast speeds of up to 500Mbps to most of the UK within a decade.

“I am pleased that we have agreed the 2014 triennial funding valuation and recovery plan with the Trustee of the BT Pension Scheme. The funding deficit is £7.0bn at 30 June 2014, an increase from 2011 reflecting the low interest rate environment. Over the next three years we will pay £2.0bn, which is less than we paid over the previous three years. We have agreed a 16 year recovery plan reflecting the strength and sustainability of our future cash flow generation.

“Mobility is a key growth area for us. We are making good progress on our due diligence in relation to a possible acquisition of EE and will make further announcements in due course. In the meantime, our Consumer mobile launch plans remain on track.”
News release
Q3 release
Pension release
Ultrafast broadband release

Webcast
Q3 video
Q3 audio
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 slides

Consensus
Pre Q4 2014-15 consensus

Second quarter and half year to 30 September 2014

Key points for the second quarter:

  • Underlying revenue excluding transit up 0.2%
  • Underlying operating costs excluding transit down 1%
  • EBITDA up 1% and earnings per share up 15%
  • 344,000 Openreach fibre broadband net connections, up 9%
  • Interim dividend up 15% to 3.9p
  • Outlook reaffirmed

Gavin Patterson, Chief Executive, commenting on the results, said:

“This was a solid quarter, with results slightly ahead of market expectations as we reduced costs and grew EBITDA. Profit before tax was up 13 per cent.

“Our Consumer business continues to perform well thanks to the impact of BT Sport where Premier League audiences are up around 45 per cent on average. Fibre is also driving growth with one in three of our retail broadband customers enjoying super-fast speeds.

“Our fibre footprint has increased to more than 21 million premises and will continue to grow. We continue to see strong demand across the market for the faster speeds that fibre offers.

“Further improving customer service remains a priority and Openreach is recruiting an additional 500 engineers to help us better serve our customers. We have also launched a range of new cloud-based products and services aimed at the business market.

“We are delivering on our strategy and our outlook remains unchanged. Our confidence enables us to raise our interim dividend by 15 per cent to 3.9p.”

News release
Q2 release

Webcast
Q2 video
Q2 audio
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 slides

Consensus
BT Pre Q3 2014-15 consensus

First quarter to 30 June 2014

Key points for the first quarter:

  • Underlying revenue excluding transit up 0.5%
  • Cost transformation running at a similar pace to last financial year; underlying operating costs excluding transit and BT Sport down 3%
  • EBITDA flat and earnings per share up 10%
  • BT Global Services and BT Business both grew EBITDA despite lower revenue
  • Our outlook remains unchanged 

Gavin Patterson, Chief Executive, commenting on the results, said:

 “This was a solid quarter, with results slightly ahead of market expectations as we reduced costs
and grew EBITDA. Profit before tax was up 13 per cent. Our Consumer business continues to
perform well thanks to the impact of BT Sport where Premier League audiences are up around
45 per cent on average.
Fibre is also driving growth with one in three of our retail broadband customers enjoying
super-fast speeds.Our fibre footprint has increased to more than 21 million premises and will
continue to grow. We continue to see strong demand across the market for the faster speeds that
fibre offers.
Further improving customer service remains a priority and Openreach is recruiting an additional
500 engineers to help us better serve our customers. We have also launched a range of new
cloud-based products and services aimed at the business market. We are delivering on our
strategy and our outlook remains unchanged. Our confidence enables us to raise our interim
dividend by 15 per cent to 3.9p.”

News release
Q1 release

Webcast
Q1 video
Q1 audio
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 slides

Consensus
BT Pre Q2 2014-15 consensus

2013/14

Revised KPIs - June 2014
Release
Revised KPIs June 2014

KPIs
Revised KPIs - June 2014

Fourth quarter and year to 31 March 2014

Key points for the fourth quarter:

  • Underlying revenue excluding transit up 1.2%
  • EBITDA up 2% and earnings per share up 10%
  • Underlying operating costs excluding transit up 0.5%; down 5% excluding our investments in BT Sport and the non-cash increase in the pensions operating charge
  • 347,000 net fibre connections, up 28%, of which 249,000 are BT retail customers
  • BT Global Services order intake of £2.2bn, up 13%

Key points for the year:

  • Underlying revenue excluding transit up 0.5%, reversing decline of 3.1% in prior year and achieving our outlook of an improved trend
  • EBITDA flat at £6,116m compared with our outlook of £6.0bn-£6.1bn
  • Normalised free cash flow of £2,450m, up £150m, ahead of our outlook of around £2.3bn
  • Underlying operating costs down 3% excluding transit, our investments in BT Sport and the non-cash increase in the pensions operating charge
  • Earnings per share up 7%
  • Net debt at £7,028m, down £769m
  • Proposed final dividend of 7.5p, up 15%, giving full year dividend of 10.9p, also up 15%
Gavin Patterson, Chief Executive, commenting on the results, said:

“We have made strong progress this year. Underlying revenue, adjusted profit before tax and normalised free cash flow have all grown and beaten market expectations.

“Our investment in fibre is delivering with 1.3 million more premises taking fibre this year, almost doubling the number of homes and businesses now connected. Our rollout is ahead of schedule with our fibre network passing more than 19 million premises, around two thirds of the UK. But we are not stopping there. All of our BDUK projects are underway and will help take the coverage of all fibre networks to at least 90% of the UK, bringing significant benefits to communities across the nation.

“BT Sport has proved very popular and we are delighted the service is now in around five million homes. For BT Consumer it underpinned a record 9% growth in revenue in the fourth quarter and the lowest line losses in over five years. We achieved an excellent 79% share of broadband5 market net additions in the quarter.

“BT Global Services delivered a 9% increase in its order intake this year and continued to see double-digit revenue increases in the high-growth regions of the world. BT Business and BT Wholesale have also delivered decent order intakes. Our cost transformation programmes are helping to drive the strong cash flow of the group.

“These results provide a strong platform for growth and from which to achieve our outlook for the years ahead. Our performance in the year means that we are growing our full year dividend by 15% to 10.9p and we now expect to increase our dividend by 10%-15% for each of the next two years. We continue to focus on improving the service we provide to our customers and delivering on our investments.”
News release
Q4 release

Webcast
Q4 video
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 slides

Consensus
BT Pre Q1 2014-15 consensus

Revised KPIs - February 2014
News release
Revised KPIs - February 2014

KPIs
Revised KPIs - February 2014

Third quarter to 31 December 2013

Key points for the third quarter:

  • Underlying revenue excluding transit up 2.4% compared with a decline of 3.2% in the prior year
  • EBITDA flat at £1,537m, with cost transformation offsetting the investment in BT Sport
  • Earnings per share up 12%
  • 2013/14 EBITDA now expected to be at the upper end of the £6.0bn-£6.1bn range
Gavin Patterson, Chief Executive, commenting on the third quarter results, said:

"This is an encouraging set of results, with profit before tax up 8%, earnings per share up 12% and growth in revenue.

"Our strategic investments are delivering. It was another record quarter for fibre take-up and there are now more than 18 million premises with access to our fibre. That number will grow further as the BDUK programme progresses.

"Fibre helps SMEs to compete and underpins our TV plans. Our direct BT Sport customer base passed 2.5 million in the quarter and helped to support 6% revenue growth in our Consumer business. We achieved some particularly strong audience figures in December and the exclusive rights to the UEFA Champions League and UEFA Europa League that we have won will further strengthen the appeal of our proposition.

"Outside the UK our businesses in the high-growth regions of the world again delivered double-digit revenue growth.

"The momentum on our cost transformation has enabled us to raise our EBITDA outlook for the year. It is important that we keep up the progress we are making across the group whilst continuing to focus on improving the service we provide to our customers.”
News release
Q3 release

Webcast
Q3 video
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 slides

Consensus
BT Pre Q4 2013-14 consensus

Second quarter and half year to 30 September 2013

Key points for the second quarter:

  • Key revenue measure down 0.5% compared with a 5.5% decline in the prior year
  • EBITDA decline reflects the expected BT Sport investment
  • Efficiencies from cost transformation programmes running at a faster pace than in the first quarter
  • Profit before tax and earnings per share up 2%
  • Interim dividend up 13% to 3.4p
  • Outlook reaffirmed
Gavin Patterson, Chief Executive Officer, commenting on the results, said:

“These are good results, with growth in earnings per share and free cash flow.

“This has been our strongest ever quarter for fibre take-up with Openreach net connections up 70%. Our fibre network now passes more than 17 million premises. It is open to all and many other service providers have now got behind it.

“BT Sport has made a confident start and is already delivering for viewers. More than two million of our customers are signed up to it and our wholesale contract with Virgin Media means it is available to around four million homes in total. It is also delivering for the business, helping us achieve a record 93% share4 of broadband net adds in the quarter, our lowest line losses for five years and 4% revenue growth in our BT Retail Consumer business.

“BT Retail’s Business division again saw good growth in IT services while BT Global Services and BT Wholesale both generated strong order books.

“I feel privileged to be the new CEO of BT and am determined to build on the strong foundations that are already in place. These are exciting times for the company and we are determined to deliver our strategy with energy and discipline.”
News release
Q2 release

Webcast
Q2 video
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 slides

Consensus
Pre Q3 2013-14 consensus

First quarter to 30 June 2013

 Key points for the first quarter:

  • Underlying revenue excluding transit down 1.1%
  • Underlying operating costs excluding transit down 1%
  • EBITDA down 1%, earnings per share up 5%
  • Now more than 500,000 BT Sport orders
  • Consumer line loss of 130,000 is the lowest in 5 years, 50% share of broadband net adds
  • 265,000 Openreach fibre broadband net connections, up 56%.
  • Outlook reaffirmed
Ian Livingston, Chief Executive, commenting on the results, said:

“BT continues to make good progress, delivering another quarter of solid growth in underlying profit before tax. This is despite the impact of regulation and the significant investments we are making for the future.

“It is early days but we are very pleased with the strong start in BT Sport. More than half a million households have now ordered BT Sport and that’s before the channels have even launched.

“Our consumer line loss is at its lowest level in five years and we took a 50% share of the broadband4 market net additions. Our SME business grew revenues by 1%, the best performance in more than four years, and our BT Global Services order intake was up almost 50%.

“Fibre remains at the heart of our plans and take-up is strong. Our fibre network now passes more than 16 million premises with more than 1.7 million connected.

“I am immensely proud to have led BT over the last five years. The foundations are in place for an exciting future and I’m confident that BT will make even more progress under Gavin’s leadership and our talented team.”
News release
Q1 news release

Webcast
Q1 video
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 slides

Consensus
Pre Q2 2013-14 consensus

2012/13

Revised KPIs - June 2013
News release
Revised KPIs news release

KPIs
Revised KPIs

Fourth quarter and year to 31 March 2013

Key points for the fourth quarter:

  • Our key revenue measure was flat – a significantly improved performance
  • Underlying operating costs excluding transit down 2%, despite our investments
  • EBITDA up 4% and earnings per share up 22%
  • Fibre available to more than half of UK homes and businesses and roll out accelerating in rural areas
  • Fibre customer base more than doubled, now at more than 1.5m
  • BT Global Services order intake of £2.0bn

Key points for the year:

  • Results in line with or better than expectations
  • Underlying operating costs excluding transit down 6%
  • EBITDA up 2%
  • Normalised free cash flow of £2.3bn
  • Net debt reduced by £1,285m
  • Proposed final dividend of 6.5p, up 14%, giving a full year dividend of 9.5p, also up 14%
Ian Livingston, Chief Executive, commenting on the results, said:

“We are doing what we said we would do. In an environment where it is easier to focus only on the short-term, we are investing in our future and delivering growth in profits and dividends. We are driving fibre across the UK, launching high quality sports channels, investing in the high-growth regions of the world and will use our wi-fi capabilities and 4G spectrum to make sure our customers will be the best connected. We have created around 3,000 new jobs in the UK over the last year to support these investments.

“Our focus on improving efficiency across the business will allow us to continue to deliver strong financial results whilst making these investments. Our good performance this year is reflected in our dividend which is up 14% for the year.

“We have a lot more to do but we are now a lot better positioned to do it.”
News release
Q4 news release

Webcast
Q4 video
Q4 transcript - part 1
Q4 transcript - part 2

KPIs
Q4 KPIs

Slides
Q4 slides - part 1
Q4 slides - part 2

Consensus
Pre Q1 2013-14 consensus

Third quarter to 31 December 2012

 Key points for the third quarter:

  • Underlying revenue excluding transit down 3.1%
  • Underlying operating costs excluding transit down 7%
  • EBITDA up 2%, earnings per share up 8%
  • 13 million premises have access to fibre
  • Around 1.25m premised connected to fibre
  • Outlook reaffirmed
Ian Livingston, Chief Executive, commenting on the results, said:

"Our fibre plans are helping to make the UK a broadband leader in Europe. More than 13 million premises can access our fibre broadband and we are passing around 100,000 additional premises every week. Take-up is growing strongly with around 1.25 million homes and businesses now enjoying the benefits of faster speeds. This gives us an excellent platform for our push into TV and Sport later this year. Our pre-season training is going well. We have secured attractive new content and world class production facilities at the Olympic Park and are building a strong team.

“Our engineers have worked tirelessly following some of the wettest weather on record. Not only did they complete a record number of field visits in the quarter, they also connected a further 281,000 homes and businesses to broadband and helped us grow the number of landlines. BT Global Services has also done well securing £1.9bn of new orders, up 17%.

“We have made progress in a number of areas and delivered solid financial results. These are in line with our expectations for the year, which remain unchanged.”
News release
Q3 news release

Webcast
Q3 video
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 slides

Second quarter and half year to 30 September 2012

Key points for the second quarter:

  • More than 12m premises passed by fibre with over 950,000 now connected and growing strongly
  • 47% share of DSL, LLU and fibre broadband market net additions
  • For the 2013 financial year we expect
    • underlying revenue excluding transit to show an improved trend for the second half of the year compared with the first half, but not for the year as a whole
    • to grow adjusted EBITDA and deliver normalised free cash flow broadly level with 2012
Ian Livingston, Chief Executive, commenting on the results, said:

“We have delivered another solid quarter of growth in profit before tax despite the economic conditions and regulatory impacts. We continue to make significant investments in the future of our business and we are again accelerating our fibre roll-out. We now expect fibre to be available to
two-thirds of UK premises during spring 2014, more than 18 months ahead of our original schedule, and we are recruiting more than 1,000 engineers in 2012 to help deliver this.

“Over the summer we helped to deliver the most connected Olympic and Paralympic Games ever and I am proud of the part that our people played in its success.

“Our confidence in the future of our business is demonstrated by the 15% increase in the interim dividend.”
News release
Q2 news release

Webcast
Q2 video
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 slides

First quarter to 30 June 2012

Ian Livingston, Chief Executive, commenting on the results, said:

“We have delivered another quarter of profit growth and the 11th consecutive quarter of double-digit earnings per share growth, although our quarterly cash flow was impacted by the timing of working capital movements. There were good performances in BT Retail, BT Wholesale and Openreach while BT Global Services was impacted by the tough conditions in Europe and the financial services sector.

“Our financial performance allows us to keep investing for the future. Our engineers are rolling out fibre at pace bringing fibre broadband to over 2m more homes and businesses in the quarter and it’s now available to over 11m premises. Our investment plans are creating around 2,000 jobs in 2012 by recruiting engineers to support our fibre plans and opening four new UK call centres. We continue to make good progress with our investments in the faster growing economies.”

News release
Q1 news release

Webcast
Q1 video
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 slides

2011/12

Fourth quarter and year to 31 March 2012

Key points for the fourth quarter:

  • Underlying revenue excluding transit down 1.9% for the year, within our target range 
  • EBITDA target of above £6bn delivered a year early 
  • Free cash flow of £2.5bn, up 13% and well above expectations 
  • Net debt up £266m after £2.0bn pension deficit payment 
  • Proposed final dividend of 5.7p, up 14%, giving a full year dividend of 8.3p, up 12% 
  • 10m homes and businesses passed with fibre, many months ahead of schedule

Ian Livingston, Chief Executive, commenting on the results, said:

“In what remains a challenging environment we have delivered another year of growth in profits and free cash flow. Our financial strength has allowed us to invest in the business, make a £2bn payment into the pension fund, reward employees and deliver double digit growth in shareholder returns.

News release
Q4 news release

Webcast
Q4 video
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 slides

Third quarter to 31 December 2011

 Key points for the third quarter:

  • Underlying revenue excluding transit down 3.0%
  • Operating costs down 9%
  • EBITDA up 3%, earnings per share up 13%
  • 7 million premises have access to fibre
  • Active consumer line loss is at its lowest for five years.

Ian Livingston, Chief Executive, commenting on the results, said:

“We have delivered another quarter of growth in profits and cash flow despite the economic headwinds. “Our investment to support our customers and improve our services has resulted in new contract wins around the world, with orders so far this year up over 50% in Asia Pacific and Latin America. In the UK, our fibre roll-out has accelerated bringing super-fast broadband within reach of over 7m homes and businesses and we remain the number one broadband retailer with over 6m customers. Our fixed-line base has now grown for the last five quarters and our active consumer line loss is at its lowest for five years. “We expect to achieve our 2013 EBITDA1 target of above £6bn a year early and to deliver free cash flow2 of around £2.4bn this year.”

News release
Q3 news release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 slides

Second quarter and half year to 30 September 2011

 Key points for the second quarter:

  • Underlying revenue excluding transit up 0.4%
  • Operating costs down 3%
  • EBITDA up 3%, earnings per share up 10%
  • Fibre network passes more than 6m premises and we are accelerating our roll-out programme to cover two-thirds of the UK by the end of 2014, one year earlier than planned

Ian Livingston, Chief Executive, commenting on the results, said:

“We have increased cash flow, profits and underlying revenue2 in the quarter. This progress has been supplemented with positive operational performances in most of our businesses.

We achieved a market leading 63% share of broadband net additions and another quarter of growth in fixed lines. “We expect to continue to offset the economic headwinds through improved customer service and processes, better efficiency, and investment in the future of the business.

This strategy and our financial results allow us to invest when others are merely talking about it. We are accelerating our fibre roll-out programme to cover two-thirds of the UK by the end of 2014 – one year earlier than planned and creating 520 new jobs. With the already announced government support, we believe there is the potential for fibre-based services to reach more than 90% of the UK within a few years thereafter.

“We are also investing across the world and have announced a programme to double our business in key Latin American countries in addition to our expansion in the Asia Pacific region announced last year.

“Our performance in the quarter reinforces but does not change our outlook for the year.”

News release
Q2 news release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 slides

First quarter to 30 June 2011

 Key points for the first quarter:

  • Underlying revenue excluding transit down 3%
  • EBITDA up 3%, earnings per share up 18%
  • DSL broadband net additions were 251,000 in the quarter, of which BT's retail share was 141,000, or 56%
  • Our copper line base grew for the third consecutive quarter
  • BT Global Services' order intake was £1.6bn in the quarter
  • First quarter results add to our confidence in delivering our outlook

Ian Livingston, Chief Executive, commenting on the results, said:

“We continue to make progress towards delivering our financial, operational and growth goals.

“We grew profit before tax1 by 20% at the same time as investing in the future of the business. Our share of DSL broadband net additions was 56%. Our super-fast broadband network has now passed over 5m premises and the customer base has almost trebled in the last six months. BT Global Services is making further progress in high growth economies and secured its largest ever contract in Latin America.”

News release
Q1 news release

Webcast
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 slides

2010/11

Fourth quarter and year to 31 March 2011

Key points for the fourth quarter:

  • Full year results in line with or ahead of our outlook for the year
  • Revenue of £20bn in line with our outlook, underlying revenue excluding transit down 3% in the year
  • Operating cost savings of £1.1bn in the year, ahead of our outlook of around £900m
  • Net debt reduced to £8.8bn, in line with our outlook, after pension deficit payments of £1.0bn in the year
  • Free cash flow of £2.2bn, ahead of our outlook and nearly trebled from two years ago
  • Proposed final dividend of 5.0p, up 9%, giving a full year dividend of 7.4p, up 7%
  • BT Global Services operating cash flow positive a year ahead of plan at £119m
  • IAS 19 pension deficit of £1.4bn (net of tax), down £4.3bn in the year
  • DSL broadband net additions of 252,000 in the quarter, of which BT’s retail market share was 64%

Ian Livingston, Chief Executive, commenting on the results, said:

“We have delivered profits and free cash flow ahead of expectations for the year, while making significant investment in the business for the future. Free cash flow has nearly trebled compared with two years ago.

“We have consolidated our position as the leading provider of broadband in the UK with our highest quarterly share of DSL broadband net additions for eight years. BT Global Services order intake was up 10% at £7.3bn and it has turned cash flow positive a year ahead of plan. Openreach saw growth in its copper line base in the year, reversing historic trends. Our roll out of super-fast broadband is one of the most rapid in the world, passing an average of 80,000 additional premises each week and we have plans to roughly double the speed of our fibre-to-the-cabinet based service in 2012.

“We expect to continue to grow our profits and free cash flow whilst investing to return BT to growth. These results show we are making progress, but we are well aware there remains a lot more to do.”

News release
Q4 news release

Webcast
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 slides

Third quarter to 31 December 2010

Key points for the third quarter:

  • Revenue of £5,038m, down 3%
  • EBITDA of £1,484m, up 7%
  • Profit before tax of £531m, up 30% (after specific items, up 111%)
  • Earnings per share of 5.4p, up 32% (after specific items, up 96%)
  • Free cash flow of £515m, up 69%
  • Net debt of £8.7bn, down £1.4bn
  • DSL broadband net additions of 188,000, 53% market share
  • BT Global Services expected to generate operating cash flow of around £100m in 2010/11 and around £200m in 2011/12

Ian Livingston, Chief Executive, commenting on the results, said:

“Profits and cash flow in the quarter were ahead of last year. BT Retail had a good quarter with growth in business revenues and our highest share of DSL broadband net additions for eight years. Openreach benefited from a stronger broadband market and growth in its copper line base. BT Global Services is now expected to be cash flow positive this year, a year earlier than targeted.

“These results show that we are making progress on a number of fronts. There is always more to do but our performance underpins our outlook for this year and the period to 2012/13.”

News release
Q3 release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 slides

Second quarter and half year to 30 September 2010

Key points for the second quarter:

  • Adjusted revenue of £4,977m, down 3%
  • Adjusted EBITDA of £1,452m, up 3%
  • Adjusted profit before tax of £496m, up 13% (reported profit before tax of £406m, up 48%)
  • Adjusted earnings per share of 5.1p, up 16% (reported earnings per share down 7% due to prior year tax credit)
  • Free cash flow of £535m; £950m in the half year, up 63%
  • Net debt of £8.7bn, down by £1.2bn
  • Interim dividend of 2.4p per share, up 4%
  • 2010/11 full year outlook raised: - adjusted EBITDA expected to be around £5.8bn - free cash flow expected to be £2bn
  • Free cash flow in 2011/12 and 2012/13 expected to be above £2bn

Ian Livingston, Chief Executive, commenting on the results, said:

“We have made significant progress in improving profitability and cash flow, enabling us to invest in building the foundations for revenue growth in 2012/13.

“We have increased our EBITDA outlook for the year and now expect to hit our £2bn free cash flow target two years early.

“Global Services order intake was up 50% at £2.1bn. Our fibre roll out has passed three million premises and BT Infinity orders are now running at over 4,000 per week. BT Vision customers now stand at more than half a million, with more developments planned to enhance our offering. Our share of DSL broadband net additions was 45%, one of our highest shares ever.”

News release
Q2 release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 slides

First quarter to 30 June 2010

 Key points first quarter:

  • Revenue of £5,006m, down 4%
  • Operating costs reduced by £291m
  • Adjusted EBITDA of £1,399m, up 6%
  • Adjusted profit before tax of £446m, up 17%
  • Adjusted earnings per share of 4.4p, up 16%, reported earnings per share of 3.7p, up 32%
  • Free cash flow of £415m, up £537m
  • Net debt of £8.9bn, down by more than £1.6bn
  • Fibre roll out passes over 1.5m UK premises in July
  • Full year outlook remains unchanged

Ian Livingston, Chief Executive, commenting on the first quarter results, said:

“We have made an acceptable start to the year, delivering improved financial results while investing in the future of the business. In TV we are offering great value premium sports packages and can now compete on a more even playing field. We hit the first major milestone in our fibre roll out, passing over 1.5m premises, and we are now running at an average rate of around 100,000 premises passed every week. In BT Global Services we continue to win significant contracts due to our ability to deliver a world class service to our customers.

“Despite the challenging environment, these financial results underpin our outlook for the full year.”

News release
Q1 News release

Webcast
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 slides

2009/10

Fourth quarter and year to 31 March 2010

 Key points for the fourth quarter:

  • Full year results ahead of our outlook for the year
  • Revenue down 2% in the year, ahead of expectations
  • Total underlying cost reductions of £1,752m in the year
  • Capital expenditure reduced by 18% in the year to £2.5bn
  • Free cash flow of £1.9bn, an improvement of £1.2bn over last year
  • Net debt reduced by over £1bn in the year
  • Proposed final dividend of 4.6p, giving 6.9p for the full year

Ian Livingston, Chief Executive, commenting, said:

“We have made good progress this year and have now set clear objectives for the next three years.

“We have improved customer service, are transforming the cost base and have more than doubled free cash flow, but there is still a lot more to do.

“We are investing in the future of our business, enhancing our TV offering and building on opportunities in our Global Services business. Assuming an acceptable environment for investment, we see the potential to roll out fibre to around two-thirds of the UK by 2015. This will take our total fibre investment to £2.5bn which will be managed within our current levels of capital expenditure.

“During the next three year period we expect to improve our underlying revenue trends, and grow EBITDA and free cash flow, while investing in the business, supporting the pension fund, reducing net debt and paying progressive dividends.

“We are on track with our goal of creating a better business with a better future.”

News release
Q4 News release

Webcast
Q4 transcript

KPIs
Q4 KPIs

slides
Q4 Slide
Investor Day Part 1 slides
Investor Day Part 2 slides

Third quarter to 31 December 2009

Key points for the third quarter:

  • Revenue of £5,198m, down 4%
  • Adjusted EBITDA of £1,444m, up 11% largely due to improvement in BT Global Services
  • Total underlying costs down 13% in the quarter, savings of £1.6bn achieved in the nine months
  • Adjusted earnings per share of 4.6p, up 53%, reported earnings per share up 188%
  • Improvement in free cash flow to £305m inflow compared with an outflow of £32m last year
  • Pension deficit payment of £525m made in the quarter
  • Net debt down nearly £1bn compared with last year to £10.1bn
  • Expect to deliver adjusted EBITDA of around £5.7bn and free cash flow of around £1.7bn for the full year

Ian Livingston, Chief Executive, commenting on the results, said:

“These results show that we are making progress. There is still a lot more to be done but our commitment to improved customer service and cost transformation is starting to deliver results and freeing up resources to invest in our future. In particular, we are one of Europe’s largest investors in super-fast fibre-based broadband and this will bring huge benefits to our customers and the UK.”

News release
Q3 News release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 Slides

Second quarter and half year to 30 September 2009

Key points for the second quarter:

  • Revenue of £5,122m, down 3%, or 6% excluding foreign exchange movements and acquisitions
  • Adjusted EBITDA of £1,436m, up 2% reflecting progress in all lines of business
  • Continued improvement in BT Global Services with adjusted EBITDA of £95m, up 53% on the first quarter
  • Adjusted earnings per share of 4.5p, down 8%, reported earnings per share of 5.5p, up 12%
  • Free cash flow of £705m, up £336m including a tax repayment and associated interest of £226m
  • Net debt reduced to £9.9bn
  • Total underlying costs down £932m in the half year
  • Interim dividend of 2.3p per share

Ian Livingston, Chief Executive, commenting on the results, said:

“We have had another quarter of progress but there remains a lot more to do. With total cost2 reductions of over £900m in the first half, we have made significant headway towards our previous target of well over £1bn for the full year. We now expect to generate at least £1.6bn of free cash flow3 this year, compared with our previous target of over £1bn.

“We are investing in the future of the business with an enhanced and accelerated programme of fibre deployment and wider roll out of faster broadband speeds, all within our capital expenditure plans.

“Given our operational performance, we expect to increase dividends by around 5% for the full year. The Board is declaring an interim dividend of 2.3p per share.”

News release
Q2 News release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 Slides

First quarter to 30 June 2009

 Key points for first quarter :

  • Revenue up 1%, down 3% excluding foreign exchange movements and acquisitions
  • EBITDA decline of 3% due to BT Global Services
  • Rest of the group continues to perform well with EBITDA growth of 6%
  • Sequential improvement in BT Global Services with EBITDA almost double the previous quarter
  • Reduction of £357m in underlying operating costs and capital expenditure
  • Free cash flow improvement of £612m compared with the prior year, including a tax repayment of £210m
  • BT’s retail share of DSL and LLU net additions was 46% in the quarter

Ian Livingston, Chief Executive, commenting on the first quarter results, said:

“We have made a solid start to the year against a background of challenging trading conditions. BT Global Services is making progress although there is still much to do. The rest of the group continues to perform well generating EBITDA2 growth of 6%.

“We are on track to deliver reductions in operating costs and capital expenditure of well over £1bn and to generate group free cash flow3 of over £1bn this year.”

News release
Q1 News release

Webcast
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 slides

2008/09

Fourth quarter and year to 31 March 2009

Key points for the fourth quarter:

  • Revenue growth of 1%
  • EBITDA decline due to an unacceptable performance in BT Global Services
  • Rest of the business delivered good performance with EBITDA growth of 4%, driven by 9% reduction in operating costs
  • Total charges of £1.3bn as a result of the completion of contract and financial reviews in BT Global Services
  • Specific item charge of £280m relating to the restructuring of BT Global Services, further restructuring charges of approximately £420m in total over the next two financial years
  • BT’s retail share of the DSL and LLU net additions at 42% in the quarter – best for four years
  • BT Global Services orders of £2.6bn in the quarter and £8.0bn over the past 12 months
  • Free cash flow of £1,134m in the quarter

Ian Livingston, Chief Executive, commenting on the results, said:

“Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn. However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken. During the year we have changed the leadership of BT Global Services and started to turn the division around.

“With a recovery programme for BT Global Services in place and our heightened focus on costs and customer service, we now want to accelerate our plans for our future networks. We will examine doubling the pace of the roll out of super fast broadband next year within existing capital expenditure plans, bringing fibre based services within the reach of more than a million homes and businesses and securing the jobs of a thousand BT people.

“In the coming year we will extend the record of operational delivery already demonstrated in three out of our four divisions right across the group. We expect to deliver a net reduction in operating costs and capital expenditure of well over £1 billion in 2009/10. This will enable us to generate free cash flow, before any pension deficit payments, in excess of £1 billion in 2009/10 and beyond.

“I believe BT will emerge from the recession a stronger company to the benefit of our customers and shareholders.”

News release
Q4 News release

Webcast
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 Slides

Third quarter to 31 December 2008

Key points for the third quarter:

  • Revenue growth of 5% driven by acquisitions and foreign exchange
  • EBITDA decline due to poor performance in BT Global Services and one-off charges
  • Rest of the business performed ahead of expectations, with EBITDA growth of 5% being the best year on year performance for five years
  • Total one-off charges of £336m as a result of the financial and contract reviews in BT Global Services
  • Completion of the ongoing contract and operational reviews may result in further substantial one-off charges in the fourth quarter
  • Decisive action to improve performance in BT Global Services
  • Free cash flow improved due to lower working capital outflow and lower capital expenditure
  • Total labour resource reduction of 9,500 in the nine months to 31 December
  • BT’s retail share of the DSL and LLU installed base remained steady at 34% (28% share of net additions in the quarter)
  • BT Global Services order intake remained steady at £1.8bn in the quarter and £8.3bn over the past 12 months

Ian Livingston, Chief Executive, commenting on the third quarter results, said:

“Three of our businesses performed ahead of expectations in the quarter and the group, excluding Global Services, delivered the best year on year profit growth for five years. However, as previously announced, the group results have been severely impacted by the performance of our Global Services division.

"We need to build a solid base in Global Services from which we can deliver positive cash flows. We have already announced changes in management and are making significant financial and operational changes to the business. We are also trying to change the division's cash flow profile to ensure it’s less concentrated towards the fourth quarter and, as a result, fourth quarter cash inflow in Global Services will be significantly lower than last year's exceptionally high figure.

"With our focus on improving the performance of Global Services, continued cost savings and control on capex across the group, we expect group free cash flow, before any pension deficit payments, to be over £1bn next year.”

News release
Q3 News release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 Slides

Second quarter and half year to 30 September 2008

Key points for the second quarter:

  • Revenue of £5,303 million, up 4 per cent
  • EBITDA before specific items and leaver costs of £1,429 million, down 1 per cent
  • BT Global Services EBITDA before leaver costs of £119 million, down 36 per cent
  • Operating profit before specific items and leaver costs of £744 million, down 1 per cent
  • Profit before taxation, specific items and leaver costs of £590 million, down 11 per cent
  • Earnings per share before specific items and leaver costs of 5.9 pence, down 3 per cent
  • Interim dividend maintained at 5.4 pence per share
  • Free cash inflow of £369 million, up by £198 million

Ian Livingston, Chief Executive, commenting on the second quarter’s results, said:

“Three out of our four business units, BT Retail, BT Wholesale and Openreach are delivering on or ahead of target. But profits in BT Global Services are simply not good enough and we are taking decisive action to put matters right. We have appointed Hanif Lalani as the new CEO of BT Global Services and he will continue to grow the business while reducing the cost base.

Demand for our BT Global Services proposition remains strong, revenue grew strongly in the quarter and the pipeline is healthy. What we have to do now is translate revenue growth into better profitability.

We continue to expect BT group revenue to grow for the full year. However because of the reduction in profitability in BT Global Services, group EBITDA2 is likely to show a small decline in the current financial year.”

News release
Q2 News release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 Slides

First quarter to 30 June 2008

Key points for the first quarter:

  • Revenue of £5,177 million, up 3 per cent
  • EBITDA before specific items and leaver costs of £1,433 million, up 1 per cent
  • Operating profit before specific items and leaver costs of £742 million, up 4 per cent
  • Profit before taxation, specific items and leaver costs of £613 million, down 7 per cent
  • Earnings per share before specific items and leaver costs of 6.1 pence, up 2 per cent
  • Free cash outflow of £734 million
  • 13.0 million broadband end users2 of which BT’s retail share was 35 per cent, with 31 per cent of net additions in the quarter

Ian Livingston, Chief Executive, commenting on the first quarter results, said:

“BT has continued to grow revenue, EBITDA3 and earnings per share3 in the first quarter.

BT Global Services has increased revenue by 13 per cent with strong growth of 33 per cent outside the UK. We achieved total contract wins of £8.2 billion over the last twelve months, and the pipeline of new business remains strong.

BT Retail performed well with revenue growth of 3 per cent and double digit profit growth. BT Wholesale has won managed network solutions contracts of £1.2 billion over the last twelve months.

We are committed to delivering long term shareholder value and will continue to invest in the future growth of our business. We have announced plans to invest £1.5 billion to make fibre-based, super-fast broadband available to as many as 10 million homes in the UK by 2012, dependent upon an appropriate regulatory environment.

Our full year guidance remains unchanged - we continue to expect to deliver growth in revenue, EBITDA3, earnings per share3 and dividends per share in this financial year.”

News release
Q1 New release

Webcast
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 Slides

2007/08

Fourth quarter and year to 31 March 2008

Key points for the fourth quarter:

  • Revenue of £5,422 million, up 2 per cent, with new wave representing 42 per cent
  • EBITDA before specific items and leaver costs of £1,569 million, up 2 per cent
  • Global Services EBITDA margin increases to 13.7 per cent
  • Profit before taxation, specific items and leaver costs of £714 million, up 3 per cent
  • Earnings per share before specific items and leaver costs of 7.0 pence, up 11 per cent
  • Free cash flow of £1,705 million, up 9 per cent
  • IAS 19 pension surplus of £2.9 billion, gross of tax

Sir Michael Rake, Chairman, commenting on the full year results, said:

“I am pleased to report that we are recommending a full year dividend of 15.8 pence per share, up 5 per cent from last year, reflecting the group’s strong performance and the Board’s continued confidence in the future of the business.

I would like to express my and the Board's thanks to Ben Verwaayen who is stepping down as Chief Executive at the end of this month. Ben has been an exceptional CEO who has transformed the business through his vision and determination. Under his leadership, BT has developed a strategy which has delivered consistent profitable growth and laid strong foundations for the future.

It is a tribute to the strength of the team he has built that the Board has been able to recruit his replacement internally. Ian Livingston has delivered brilliantly for BT both as group finance director and as the CEO of BT Retail.

In 2008/09, we expect to deliver continued growth in revenue, EBITDA1 and earnings per share1 as we continue our transformation from a fixed-line business into a software-driven global communications services company. We also expect our free cash flow to be at a similar level to last year.

I am confident that we have the right strategy and people in place to continue to deliver value for our shareholders and expect to increase dividends per share in 2008/09.”

News release
Q4 News release

Webcast
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 Slides

Third quarter to 31 December 2007

Key points for the third quarter:

  • Revenue of £5,154 million, up 1 per cent
  • New wave revenue of £2,014 million, up 7 per cent
  • EBITDA before specific items and leaver costs of £1,469 million, up 2 per cent
  • Global Services EBITDA margin increases to 10.9 per cent
  • Profit after taxation, before specific items and leaver costs of £475 million, down 2 per cent
  • Earnings per share before specific items and leaver costs of 5.9 pence, up 2 per cent
  • Continued strong broadband net additions of 511,000 of which BT’s retail share was 35 per cent

Ben Verwaayen, Chief Executive, commenting on the third quarter results, said:

“This has been another solid performance. We have delivered our twenty third consecutive quarter of year on year earnings per share2 growth.

BT Global Services has shifted up a gear, delivering real growth in EBITDA2 margins. We won total contracts worth £1.9 billion in the quarter, and revenues outside of the UK grew by 22 per cent.

We remain the UK’s number one retail broadband provider with 35 per cent of the installed DSL and LLU base, and BT Vision customers more than doubled in the quarter.

We expect continued growth in revenue, EBITDA2, earnings per share2 and dividends, and a significant free cash inflow in the fourth quarter.”

News release
Q3 News release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 Slides

Organisation structure change
Organisation structure release
Organisation structure release

Organisation structure slides
Organisation structure slides

Second quarter and half year to 30 September 2007

Key points for the second quarter:

  • Revenue of £5,095 million, up 3 per cent
  • New wave revenue of £1,914 million, up 10 per cent
  • EBITDA before specific items and leaver costs of £1,448 million, up 2 per cent
  • Net specific items charge before taxation of £182 million, principally relating to the group’s transformation programme
  • Earnings per share before specific items and leaver costs of 6.1 pence, up 2 per cent
  • Continued strong broadband net additions of 479,000 of which BT’s retail share was 37 per cent

Ben Verwaayen, Chief Executive, commenting on the second quarter’s results, said:

“This is another solid set of results with revenue, EBITDA1 and earnings per share1 all continuing to grow. This is the twenty second consecutive quarter of year on year growth in earnings per share1. We are achieving significant transformation of our business which will deliver further efficiencies alongside faster, better, smarter services for our customers. We continue to be the UK’s number one retail broadband provider.

“Total BT Global Services contract orders in the quarter amounted to £1.6 billion, bringing the value of total orders achieved over the last twelve months to £9.2 billion.

“During the first half of the year we have made a number of acquisitions, both in the UK and overseas, to increase the breadth and depth of the services we offer our customers. These include Comsat International in Latin America, i2i in India and Brightview, Basilica and Lynx Technologies in the UK.

“I am delighted to welcome Sir Michael Rake as our new chairman and look forward to working closely with him. His dynamism and vision will help us succeed as we move through BT’s transformation.

“Our confidence in the future performance of our business is reflected in the interim dividend of 5.4 pence per share, which is 6 per cent higher than last year. This shows our ongoing commitment to improving shareholder returns”.

News release
Q2 News release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q1 Slides

First quarter to 30 June 2007

Key points for the first quarter:

  • Revenue of £5,033 million, up 3 per cent
  • New wave revenue of £1,815 million, up 11 per cent
  • EBITDA before specific items and leaver costs of £1,425 million, up 3 per cent
  • Profit before taxation, specific items and leaver costs of £658 million, up 3 per cent
  • Earnings per share before specific items and leaver costs of 6.0 pence, up 3 per cent, our twenty first consecutive quarter of growth
  • Broadband net additions of 0.5 million to 11.2 million connections at June 30, 2007
  • BT Retail’s share of net additions was 38 per cent

Ben Verwaayen, Chief Executive, commenting on the first quarter results, said:

“We have got the year off to a strong start with another robust all round performance. Revenue, EBITDA and earnings per share all continue to grow as BT builds on the achievements of last year.

“There is success across the board. BT Retail’s share of the broadband(2) net additions in the quarter was 38 per cent; contract wins in BT Global Services and BT Wholesale were £2 billion; outside the UK we gained more than 100 new customers.

“We are keeping BT ahead of the game by delivering software driven services that will offer faster, more resilient and cost effective services to our customers wherever in the world they are.”

News release
Q1 News release

Webcast
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 Slides

2006/07

Fourth quarter and year to 31 March 2007

Key points for fourth quarter :

  • Revenue of £5,292 million, up 3 per cent
  • New wave revenue of £2,117 million, up 14 per cent, represents 40 per cent of total revenue
  • EBITDA before specific items and leaver costs of £1,537 million, up 3 per cent
  • Profit before taxation, specific items and leaver costs of £695 million, up 10 per cent
  • Earnings per share before specific items and leaver costs of 6.3 pence, up 11 per cent, the twentieth consecutive quarter of year on year growth
  • Broadband net additions of 0.8 million to 10.7 million at March 31, 2007. BT Retail’s share of net additions was 32 per cent

Sir Christopher Bland, Chairman, commenting on the full year results, said:

“BT has come a long way in the past five years. This is a very strong set of results which demonstrates how much has been achieved. Revenue grew by 4 per cent and earnings per share before specific items grew by 16 per cent.

“I am delighted to report that our proposed full year dividend is 15.1 pence per share, 27 per cent higher than last year, moving to a two thirds payout ratio a year earlier than we had previously announced. In addition, because of the financial strength of the company, we are introducing a new £2.5 billion share buyback programme which we expect to be completed by March 31, 2009.

“We have delivered on our commitments and are confident we will continue to grow revenue, EBITDA, earnings per share and dividends over the coming year.”

News release
Q4 News release

Webcast
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 Slides

Third quarter to 31 December 2006

Key points for the third quarter:

  • Revenue of £5,126 million, up 5 per cent
  • New wave revenue of £1,880 million, up 17 per cent, representing 37 per cent of total revenue
  • EBITDA before specific items and leaver costs of £1,439 million, up 2 per cent
  • Profit before taxation, specific items and leaver costs of £643 million, up 13 per cent
  • Earnings per share before specific items and leaver costs of 5.8 pence, up 14 per cent
  • Specific items include a net credit of £1,067 million relating to the settlement of ten open tax years
  • Continued strong broadband net additions of 697,000 of which BT Retail’s share was 34 per cent

Ben Verwaayen, Chief Executive, commenting on the third quarter results, said:

“This is another strong set of results; our strategy is delivering and the positive trends are gathering momentum. The revenue growth of 5 per cent reflects continued strong growth in new wave services and a robust defence of our traditional business, underpinned by growth in active consumer customers for the first time in four years.

“There are now more than 10 million wholesale broadband connections2 and the market continues to grow strongly. In an intensely competitive market BT Retail's share of the net additions2 in the quarter was 34 per cent. Openreach has reached 1.5 million LLU connections this month. The sales orders won by BT Global Services in the quarter were £2.5 billion.

“After nineteen consecutive quarters of earnings per share3 growth, our expectations are to continue to grow our revenue, EBITDA3, earnings per share3 and dividends for this financial year and next.”

News release
Q3 News release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 Slides

Second quarter and half year to 30 September 2006

Key points for the second quarter:

  • Revenue of £4,941 million, up 4 per cent
  • New wave revenue of £1,736 million, up 21 per cent, representing 35 per cent of total revenue compared with 30 per cent last year
  • EBITDA before specific items and leaver costs of £1,418 million, up 2 per cent
  • Profit before taxation, specific items and leaver costs of £665 million, up 12 per cent
  • Earnings per share before specific items and leaver costs of 6.0 pence, up 13 per cent
  • Continued strong broadband net additions of 626,000 of which BT Retail’s share was 25 per cent

Sir Christopher Bland, Chairman, commenting on the half year results said:

“These strong half year results show sustained momentum across the business with revenues up 3 per cent and earnings per share before specific items up 19 per cent.

“I am pleased to report that we will be paying an interim dividend of 5.1 pence, up 19 per cent on last year, showing our continued commitment to improving shareholder returns and our confidence for the future.”

News release
Q2 News release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 Slides

First quarter to 30 June 2006

Key points for the first quarter:

  • Revenue of £4,864 million, up 3 per cent
  • New wave revenue of £1,641 million, up 18 per cent, represents 34 per cent of total revenue
  • EBITDA before specific items and leaver costs of £1,386 million, up 2 per cent
  • Profit before taxation, specific items and leaver costs of £639 million, up 24 per cent
  • Earnings per share before specific items and leaver costs of 5.8 pence, up 26 per cent
  • BT Retail’s share of broadband net additions was 30 per cent
  • Broadband end users of 8.7 million at June 30, 2006

Ben Verwaayen, Chief Executive, commenting on the first quarter results, said:

“This is a strong all round performance to start the financial year, with the momentum we saw in recent quarters continuing. Revenue has increased for ten consecutive quarters; EBITDA3 was up 2 per cent, an improvement on the rate of growth we achieved last quarter; and earnings per share3 was up 26 per cent, the seventeenth consecutive quarter of growth.

“Our international business is expanding strongly and we won more than 200 new customer accounts outside the UK in the quarter.

“Our first quarter results underpin our confidence in our ability to continue to grow our revenue, EBITDA, earnings per share and dividends this year.”

News release
Q1 News release

Webcast
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 Slides

2005/06

Fourth quarter and year to 31 March 2006

Key points for the fourth quarter:

  • Revenue of £5,134 million, up 7 per cent (5 per cent excluding acquisitions)
  • New wave revenue of £1,851 million, up 28 per cent, represents 36 per cent of total revenue
  • EBITDA before specific items and leaver costs of £1,498 million, up 1 per cent
  • Profit before taxation, specific items and leaver costs of £629 million, up 4 per cent
  • Earnings per share before specific items and leaver costs of 5.7 pence, up 8 per cent, the sixteenth consecutive quarter of year on year growth
  • Broadband net additions of 0.8 million, of which BT Retail’s share was 31 per cent

Sir Christopher Bland, Chairman, commenting on the full year results, said:

“This is an excellent set of full year results delivered in a competitive and fast-changing environment. Revenues for the full year have grown by 6 per cent; new wave revenues, which grew by 38 per cent to £6.3 billion, now represent around one third of the group’s business. We have continued to transform the business at a fast pace whilst growing our earnings per share before specific items by 8 per cent to 19.5 pence.

“I am pleased to announce a full year dividend of 11.9 pence per share, 14 per cent higher than last year. We are confident in our ability to improve shareholder returns and accelerate the strategic transformation of the business.”

News release
Q4 News release

Webcast
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 Slides

Third quarter to 31 December 2005

Key points for the third quarter:

  • Revenue of £4,946 million, up 8 per cent (3 per cent excluding acquisitions)
  • New wave revenue of £1,607 million, up 42 per cent, represents one third of total
  • EBITDA before specific items and leaver costs of £1,404 million, down £8 million
  • Profit before taxation, specific items and leaver costs of £568 million, up 2 per cent
  • Earnings per share before specific items and leaver costs of 5.1 pence, up 4 per cent
  • Broadband net additions of 0.7 million, BT Retail’s share was 31 per cent

Ben Verwaayen, Chief Executive, commenting on the third quarter results, said:

“We have delivered yet another good set of results in a dynamic business environment.

"Revenue has grown by 8 per cent and new wave turnover - which now represents one third of our business - is up 42 per cent. Earnings per share* have grown for the fifteenth quarter in a row and the improving trend in underlying EBITDA continues. BT Retail’s profitability has grown strongly driven by innovative products and services aligned with continued focus on cost management. Our international business continues to grow rapidly and now delivers services in more than 160 countries around the world. We are fast establishing ourselves as a global leader.

“Broadband growth continues to be very strong with the number of BT Wholesale connections now standing at more than seven million. This is pushing the UK to the front of Europe in broadband take up. "The transformation of the business continues to deliver value to our customers and shareholders."

News release
Q3 News release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 Slides

Second quarter and half year to 30 September 2005

Key points for the second quarter:

  • Revenue of £4,822 million, up 5 per cent
  • New wave revenue of £1,439 million, up 39 per cent
  • Profit before taxation, specific items and leaver costs of £596 million, up 7 per cent
  • Earnings per share before specific items of 5.0 pence, up 4 per cent
  • Net debt of £8,133 million, 3 per cent lower than previous year
  • Broadband end users of 6.2 million at September 30, 2005, up 89 per cent

Sir Christopher Bland, Chairman, commenting on the half year results said:

“The half year results show that we have delivered another good set of financial results and made further progress in transforming the business. “I am pleased to report that we will be paying an interim dividend of 4.3 pence, up 10 per cent on last year, showing our commitment to improving shareholder returns and confidence about the future.”

News release
Q2 News release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 Slides

First quarter to 30 June 2005

Key points for the first quarter:

  • Revenue of £4,783 million, up 5 per cent
  • New wave revenue of £1,385 million, up 48 per cent
  • Group operating profit before specific items of £648 million, up 10 per cent
  • Profit before taxation and specific items of £511 million, up 20 per cent
  • Earnings per share before specific items of 4.5 pence, up 25 per cent
  • Net debt of £8,121 million, 4 per cent lower than previous year, including additional finance lease liabilities recognised under IFRS
  • Broadband end users of 5.6 million at June 30, 2005

Ben Verwaayen, Chief Executive, commenting on the first quarter results, said:

“This has been a great first quarter and builds on the momentum we have seen gathering for more than a year.

“Revenue grew by 5 per cent in the quarter and earnings per share grew by 251 per cent. We have achieved real international success. We won global networked IT services orders of £2.4 billion in the quarter which takes orders for the last twelve months to a record level of more than £8 billion – a terrific achievement. In the UK, in a highly competitive market, we have launched a number of innovative services such as BT Fusion, a world first that delivers all the benefits of a fixed line from a mobile phone.

“The transformation of the business is delivering real value to our customers and shareholders.”

News release
Q1 News release

Webcast
Q1 transcript

KPIs
Q! KPIs

Slides

2004/05

Fourth quarter and year to 31 March 2005

Key points for the fourth quarter:

  • Group turnover up 2 per cent at £4,870 million
  • New wave turnover of £1,367 million up 27 per cent
  • Profit before taxation, goodwill amortisation and exceptional items of £557 million, up 21 per cent
  • Earnings per share before goodwill amortisation and exceptional items up 26 per cent at 4.9 pence
  • Net debt of £7,786 million, £639 million lower than previous year
  • Acquisitions of Infonet and Albacom successfully completed
  • Broadband end users now more than 5 million with a record 825,000 DSL connections in the quarter

Sir Christopher Bland, Chairman, commenting on the full year results, said:

“The financial results for the full year reflect the continuing strong trends that we have seen during the year. New wave revenues have grown by 32 per cent to £4.5 billion and now represent nearly a quarter of our business. Earnings per share before goodwill amortisation and exceptional items of 18.1 pence have more than doubled over the past three years. We have again generated free cash flow of more than £2 billion and reduced net debt to below £8 billion, a level with which we are comfortable. Net debt is now more than £20 billion lower than in 2001. The transformation of our business is reflected in our financial results.

“I am particularly pleased to announce a full year dividend of 10.4 pence per share, which is 22 per cent higher than last year. This shows our continued commitment to improving shareholder returns whilst building for the future.”

News release
Q4 News release

Webcast
Q4 transcript

KPIs
Q4 KPIs

Slides
Q4 Slides

Third quarter to 31 December 2004

Key points for the third quarter:

  • Group turnover up 3 per cent, excluding the impact of mobile termination rate reductions, at £4,584 million. Turnover was marginally up including the impact of mobile termination rate reductions
  • New wave turnover of £1,135 million, up 35 per cent, representing 25 per cent of group turnover
  • Profit before taxation, goodwill amortisation and exceptional items of £545 million, up 4 per cent
  • Earnings per share before goodwill amortisation and exceptional items, up 9 per cent at 4.8 pence
  • Net debt of £7,940 million, 10 per cent lower than previous year
  • Broadband end users of 4.1 million at December 31, 2004 with a record 813,000 DSL connections in the quarter

Ben Verwaayen, Chief Executive, commenting on the third quarter results, said:

“Our transformation strategy has now delivered underlying revenue growth in four consecutive quarters, a significant milestone. We have seen new wave growth of 35 per cent.

“Broadband DSL connections were more than 800,000 in the quarter, a new connection every 10 seconds of every day. We expect to achieve 5 million broadband DSL connections a year ahead of target.

“Our global ICT presence is building strongly and our Global Services revenues grew by 10 per cent in the quarter. “Earnings per share before goodwill amortisation and exceptional items grew by 9 per cent to 4.8 pence.

 “These results justify the confidence we have in our strategy which is transforming BT and delivering long-term growth in shareholder value.”

News release
Q3 News release

Webcast
Q3 transcript

KPIs
Q3 KPIs

Slides
Q3 Slides

Second quarter and half year to 30 September 2004

Key points for the second quarter:

  • Group turnover up 2 per cent, excluding the impact of mobile termination rate reductions, at £4,602 million. Up 1 per cent including the impact of mobile termination rate reductions
  • New wave turnover of £1,033 million, up 36 per cent
  • Profit before taxation, goodwill amortisation and exceptional items of £549 million, up 4 per cent
  • Earnings per share before goodwill amortisation and exceptional items, up 9 per cent at 4.8 pence
  • Free cash flow before acquisitions, disposals and dividends of £594 million
  • Net debt of £8,267 million, 6 per cent lower than previous year
  • Broadband end users of 3.3 million at September 30, 2004 with a record 607,000 DSL connections in the quarter

Sir Christopher Bland, Chairman, commenting on the half year results said:

“The group is making exciting progress, delivering strong financial results whilst transforming the business. I am very pleased to report that we will be paying an interim dividend of 3.9 pence per share, 22 per cent higher than last year.

“We continue to invest in our business at a rate well above others in Europe. This investment, together with our continuing research and development programmes, are helping BT take a world leading position.”

News release
Q2 News release

Webcast
Q2 transcript

KPIs
Q2 KPIs

Slides
Q2 Slides

First quarter to 30 June 2004

 Key points for the first quarter:

  • Group turnover up 0.8 per cent, excluding the impact of mobile termination rate reductions, at £4,567 million. Down 0.4 per cent including the impact of mobile termination rate reductions
  • New wave turnover of £936 million, up 32 per cent
  • Profit before taxation, goodwill amortisation and exceptional items of £434 million, down 13 per cent. Up 5 per cent before leaver costs
  • Earnings per share before goodwill amortisation and exceptional items, down 10 per cent at 3.7 pence. Up 10 per cent at 4.6 pence before leaver costs
  • Net debt of £8,317 million, 7 per cent lower than previous year
  • Broadband end users of 2.7 million at June 30, 2004

Ben Verwaayen, Chief Executive, said:

“The transformation of our business continues at pace. This is the second consecutive quarter of underlying growth in turnover. New wave turnover, including ICT, broadband, mobility and managed services grew by 32 per cent to £936 million. New wave businesses generated over 20 per cent of group turnover in the quarter. This strong growth in new wave has offset the decline in turnover from the traditional business and these results reflect a continuation of recent trends.

“Earnings per share before goodwill amortisation, exceptional items and leaver costs grew by 10 per cent to 4.6 pence.

“Our 21st Century Network (21CN) programme team have announced a number of customer trials with large scale roll out expected in 2006.

“Whilst the environment remains challenging we are confident in our strategy to deliver long-term growth for shareholders.”

News release
Q1 News release

Webcast
Q1 transcript

KPIs
Q1 KPIs

Slides
Q1 Slides