BT's full year results

BT announced its full year and fourth quarter results in May.

"Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn," said BT's chief executive officer, Ian Livingston. "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."

He added: "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."

More.

Key points at-a-glance

Fourth quarter:

Revenue growth of 1 per cent
EBITDA decline due to an unacceptable performance in BT Global Services
Rest of the business delivered good performance with EBITDA growth of 4 per cent, driven by 9 per cent 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 per cent in the quarter – best for four years
BT Global Services orders of £2.6bn in the quarter and £8bn over the past 12 months
Free cash flow of £1.134bn in the quarter

Full year:

Revenue growth of 3 per cent
Free cash flow of £737m in the year
Pension deficit contributions of £525m before tax relief agreed for each of next three financial years
Final dividend of 1.1p, giving total for year of 6.5p