Additional information & glossary

Quarterly analysis of turnover & profit | Financial statistics | Operational statistics and regulatory information | Additional information for shareholders |  Glossary of terms and US equivalents |    Cross-reference to Form 20-F

Back to contents

Quarterly analysis of turnover and profit
 (UNAUDITED) YEAR ENDED 31 MARCH 1999

Quarters 1st 2nd 3rd 4th Total
£m £m £m £m £m
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Total turnover - ongoing activities 4,239 4,403 4,684 4,897 18,223
Group's share of associates' and joint ventures' turnover (196) (246) (410) (418) (1,270)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Group turnover - ongoing activities 4,043 4,157 4,274 4,479 16,953
Other operating income 37 34 31 66 168
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Group operating profit - ongoing activities 898 913 1,012 993 3,816
Group's share of operating loss of associates
and joint ventures (78) (56) (101) (107) (342)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Total operating profit - ongoing activities 820 857 911 886 3,474
Profit on sale of fixed asset investments and
group undertakings (a) - 1,107 - - 1,107
Net interest payable (97) (86) (53) (50) (286)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Profit on ordinary activities before taxation 723 1,878 858 836 4,295
Tax on profit on ordinary activities:
Corporation and similar taxes (224) (544) (266) (259) (1,293)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Profit on ordinary activities after taxation 499 1,334 592 577 3,002
Minority interests (13) - 3 (9) (19)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Profit for the financial period 486 1,334 595 568 2,983
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Basic earnings per share 7.6p 20.7p 9.2p 8.8p 46.3p
Basic earnings per share before exceptional items 7.6p 8.7p 9.3p 9.1p 34.7p
Diluted earnings per share 7.4p 20.2p 9.0p 8.6p 45.3p
Diluted earnings per share before
exceptional items 7.4p 8.5p 9.1p 8.9p 34.0p
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
(a)Including gain on MCI shares sold   - 1,133 - - 1,133
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
 
 
(UNAUDITED) YEAR ENDED 31 MARCH 1998
Quarters 1st 2nd 3rd 4th Total
£m £m £m £m £m
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Total turnover - ongoing activities 3,844 4,003 4,083 4,109 16,039
Total turnover - discontinued activities 584 580 208 - 1,372
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Total turnover, including discontinued activities 4,428 4,583 4,291 4,109 17,411
Group's share of associates' and joint ventures' turnover (630) (632) (352) (157) (1,771)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Group turnover - ongoing activities 3,798 3,951 3,939 3,952 15,640
Other operating income (a) 25 26 279 42 372
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Group operating profit - ongoing activities 891 813 1,149 804 3,657
Group's share of operating profit (loss) of associates
and joint ventures 28 (68) (81) (75) (196)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Total operating profit (loss):  
  Ongoing activities 862 783 1,062 729 3,436
  Discontinued activities 57 (38) 6 - 25
919 745 1,068 729 3,461
Profit (loss) on sale of fixed asset investments and
group undertakings 20 (2) 45 - 63
Net interest payable (58) (59) (94) (99) (310)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Profit on ordinary activities before taxation 881 684 1,019 630 3,214
Tax on profit on ordinary activities:
  Corporation and similar taxes (278) (215) (285) (199) (977)
  Windfall tax - (510) - - (510)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Profit (loss) on ordinary activities after taxation 603 (41) 734 431 1,727
Minority interests (4) 6 (14) (13) (25)
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Profit (loss) for the financial period 599 (35) 720 418 1,702
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
Basic earnings (loss) per share 9.4p (0.5p) 11.3p 6.5p 26.6p
Basic earnings per share before exceptional items 9.4p 7.4p 8.3p 6.5p 31.7p
Diluted earnings (loss) per share 9.3p (0.5p) 11.1p 6.4p 26.2p
Diluted earnings per share before
exceptional items 9.3p 7.3p 8.2p 6.4p 31.2p
----------------------------------------------------------------------------------------- ----------------------------------------------------------------
(a) Including MCI merger break up fee net of expenses - - 238 - 238
----------------------------------------------------------------------------------------- ----------------------------------------------------------------

back to top

Financial statistics

 

Financial ratios
YEARS ENDED 31 MARCH
1995 1996 1997 1998 1999
------------------------------------------------------------------------------ ----------------------------------------------------------------
Basic earnings per share - pence 27.8 31.6 32.8 26.6 46.3
Growth in dividends per share % (a) 6.0 5.6 6.1 6.4 7.4
Return on capital employed % (b) 15.7 18.4 19.1 19.5 18.4
Gearing - net debt to equity % (c) 17.8 7.4 1.6 36.1 6.3
Interest cover (d) 10.3 16.9 19.7 11.2 12.1
Dividend cover (a) (e) 1.6 1.7 1.7 1.8 1.7
------------------------------------------------------------------------------ ----------------------------------------------------------------
(a) 1997 and 1998 figures exclude the effects of the special dividend of 35p per share paid in September 1997.
(b) The ratio is based on profit before tax and interest on long-term borrowings, to average capital employed. Capital employed is represented by total assets less current liabilities, excluding corporate taxes and dividends payable, and provisions other than those for deferred taxation. Year-end figures are used in the computation of the average, except in the case of short-term investments and borrowings where average daily balances are used in their place.
(c) The ratio is based on borrowings net of cash and short-term investments to capital and reserves and minority interests.
(d) The number of times net interest payable is covered by operating profit. In 1995 and 1997, net interest excludes the premium paid on the repurchase of bonds.
(e) The number of times dividends are covered by earnings. The figure for 1998 excludes the effect of the windfall tax charge and the figure for 1999 excludes the gain on sale of the MCI shares.
 
Expenditure on research and development
YEARS ENDED 31 MARCH
1995 1996 1997 1998 1999
£m £m £m £m £m
------------------------------------------------------------------------------ ----------------------------------------------------------------
Total expenditure 271 282 291 307 268
------------------------------------------------------------------------------ ----------------------------------------------------------------
 
Expenditure on tangible fixed assets
YEARS ENDED 31 MARCH
Plant and equipment
  Transmission equipment 1,060 1,114 1,131 1,219 1,416
  Exchange equipment 605 566 445 512 411
  Other network equipment 378 491 503 502 558
  Computers and office equipment 343 333 350 372 464
  Motor vehicles and other 214 195 175 230 230
Land and buildings 75 87 143 211 205
Decrease in engineering stores (4) (15) (28) (16) (15)
------------------------------------------------------------------------------ ----------------------------------------------------------------
Total expenditure on tangible fixed assets 2,671 2,771 2,719 3,030 3,269
Decrease (increase) in creditors (33) (224) 104 (10) (49)
------------------------------------------------------------------------------ ----------------------------------------------------------------
Cash outflow on purchase of tangible fixed assets 2,638 2,547 2,823 3,020 3,220
------------------------------------------------------------------------------ ----------------------------------------------------------------
Financial statistics have been restated where necessary to provide consistency with the presentation of the 1999 financial year figures.

back to top

Operational statistics and regulatory information

 

Call growth
YEARS ENDED 31 MARCH
1995 1996 1997 1998 1999
----------------------------------------------------
% growth in fixed network call volumes over the previous year:
Inland 7 6 7 7 9
International (a) 5 9 7 9 11
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
(a) Outgoing, incoming and transit.
Growth is estimated by reference to turnover growth attributable to calls, adjusted to eliminate the effect of price changes.
Exchange line connections
AT 31 MARCH
Business( '000) 6,459 6,798 7,160 7,521 7,982
% growth over previous year 5.4 5.2 5.3 5.0 6.1
Residential ('000) 20,613 20,500 20,393 20,130 20,067
% growth (reduction) over previous year 0.7 (0.5) (0.5) (1.3) (0.3)
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
Total exchange line connections ('000) 27,072 27,298 27,553 27,651 28,049
% growth over previous year 1.8 0.8 0.9 0.4 1.4
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
BT Cellnet (Cellular telephones in the UK)
AT 31 MARCH
Digital GSM ('000) 34 353 1,125 2,303 4,163
Analogue ('000) 1,700 2,036 1,573 774 359
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
Total ('000) 1,734 2,389 2,698 3,077 4,522
% growth over previous year 70.2 37.8 12.9 14.0 47.0
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
Optical fibre
AT 31 MARCH
Fibre - kilometres in the network ('000) 2,782 3,043 3,302 3,591 4,058
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
Payphones
AT 31 MARCH
Total public payphones in the UK ('000) 129 133 136 138 142
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
People employed
AT 31 MARCH
Total employees ('000) 137.5 130.7 127.5 124.7 124.7
-------------------------------------------------------------------------------------------------- ----------------------------------------------------
Classified directory business in the UK
The company is providing the following information with respect to its classified directory business in the UK in accordance with undertakings made with the Office of Fair Trading in 1996. For the year ended 31 March 1999, the classified directory business of BT made an operating profit of £190m (1998 - £179m) on turnover of £439m (1998 - £420m) and, at 31 March 1999, it employed net assets of £151m (1998 - £136m). Since the classified directory business is integrated with the company's wider operations, this financial information incorporates the effects of certain apportionments and allocations of expenditures and assets.
BT is required to submit annual audited accounts in respect of the classified directory business to the Director of the Office of Fair Trading within nine months of the company's financial year end. Copies of these accounts, when available, may be obtained free of charge from the Financial Director, Yellow Pages at Queens Walk, Reading, RG1 7PT.

back to top

Additional information for shareholders

Background
The company was incorporated under the laws of England and Wales on 1 April 1984 as a public limited company wholly owned by Her Majesty's Government of the United Kingdom. In a series of three offers to the public, HM Government reduced its holding from 100% in December 1984 to less than 1% in July 1993. HM Government now owns less than 0.2% of the outstanding ordinary shares.

Listings
The principal listing of BT's ordinary shares is on the London Stock Exchange. The shares are also listed on the Tokyo Stock Exchange. American Depositary Shares (ADSs), each representing 10 ordinary shares, have been issued by Morgan Guaranty Trust Company of New York, as Depositary for the American Depositary Receipts (ADRs) evidencing the ADSs, and are listed on the New York Stock Exchange. ADSs also trade, but are not listed, on the London Stock Exchange. Trading on the New York Stock Exchange is under the symbol "BTY". BT shares are traded on the Tokyo Stock Exchange under the Code "9484".

 
Share and ADS prices
Pence per ordinary share US$ per ADS
-------------------------- --------------------------
High Low High Low
pence pence $ $
-------------------------- --------------------------
YEAR ENDED 31 MARCH 1997
1 April - 30 June 1996 382.5 326.5 58.625 49.25
1 July - 30 September 1996 397 336 60.5 53
1 October - 31 December 1996 410 345 68.75 54.125
1 January - 31 March 1997 461.5 393 73.75 66.375
------------------------------------------------------------------------------------------------------- -------------------------- --------------------------
YEAR ENDED 31 MARCH 1998
1 April - 30 June 1997 482.5 424 78.75 69.5
1 July - 30 September 1997 501.5 379.5 82.5 60.875
1 October - 31 December 1997 483.5 439.5 81.75 71.875
1 January - 31 March 1998 685 480.75 113.875 79.875
------------------------------------------------------------------------------------------------------- -------------------------- --------------------------
YEAR ENDED 31 MARCH 1999
1 April - 30 June 1998 757 630 125.4375 102.25
1 July - 30 September 1998 902 745.5 148.75 124.25
1 October - 31 December 1998 908 676 154.25 116.375
1 January - 31 March 1999 1,118.5 899.5 179 .9375 148.25
------------------------------------------------------------------------------------------------------- -------------------------- --------------------------
YEAR ENDING 31 MARCH 2000
1 April - 18 May 1999 1,089 970 175.125 159
------------------------------------------------------------------------------------------------------- -------------------------- --------------------------
The prices are the highest and lowest closing middle market prices for BT ordinary shares, as derived from the Daily Official List of the London Stock Exchange and the highest and lowest sales prices of ADSs, as reported on the New York Stock Exchange composite tape.  
Fluctuations in the exchange rate between the pound sterling and the US dollar affect the dollar equivalent of the pound sterling price of the company's ordinary shares on the London Stock Exchange and, as a result, are likely to affect the market price of the ADSs on the New York Stock Exchange.  

Relative TSR performance over the five financial years to 31 March 1999

Relative TSR performance over five financial years to 31 March 1999 - graph

Total Shareholder Return (TSR) is the measure of the returns that a company has provided for its shareholders, and is therefore a good indicator of a company's overall performance. The TSR indices on the above graph are the product of share price movement plus gross dividends reinvested in the shares to July 1997 and net dividends thereafter.

Analysis of shareholdings     Ordinary shares of 25p each
Size of shareholding     -----------------------------
Number of shareholders Percentage
of total		 Number of shares held
(millions)		 Percentage
of total
AT 31 MARCH 1999
------------------------------------------------------------------------------------------ ------------------------------------------------------------------
1 - 399 859,404 45.1 183 2.8
400 - 799 550,734 29.0 298 4.6
800 - 1,599 332,355 17.5 363 5.6
1,600 - 9,999 154,331 8.1 412 6.4
10,000 - 99,999 3,589 0.2 89 1.4
100,000 - 999,999 1,291 0.1 452 7.0
1,000,000 - 4,999,999 393 - 833 12.9
5,000,000 and above (a)(b)(c) 175 - 3,839 59.3
------------------------------------------------------------------------------------------ ------------------------------------------------------------------
Total 1,902,272 100.0 6,469 100.0(d)
------------------------------------------------------------------------------------------ ------------------------------------------------------------------
(a) Under the BT Executive Share Plan, the BT Performance Share Plan and the BT Deferred Bonus Plan 6.9 million shares were held in trust in respect of contingent awards of shares which have been granted to 905 participants.  
(b) Under the BT Employee Share Ownership Scheme 32 million shares were held in trust on behalf of 126,851 participants who were beneficially entitled to the shares.  
(c) Approximately 93 million shares were represented by ADSs and a further 11 million shares were held by a nominee of the Tokyo Stock Exchange on behalf of investors. Analysis by size of holding is not available for these holdings.  
(d) 18.9% of the shares were in 1,857,208 individual holdings, of which 165,266 were joint holdings, and 81.1% of the shares were in 45,064 institutional holdings.  
So far as the company is aware, no person is the beneficial owner of more than 10% of the company's ordinary shares, nor is the company directly or indirectly owned or controlled by another corporation or by HM Government or any other foreign government. There are no arrangements known to the company the operation of which may at a subsequent date result in a change in control of the company.  
At 18 May 1999, there were 6,470,161,894 ordinary shares outstanding. At the same date, approximately 9.2 million ADSs (equivalent to 92 million ordinary shares, or approximately 0.14% of the total number of ordinary shares outstanding on that date) were outstanding and were held by 2,172 record holders of ADRs.  

CREST: London Stock Exchange settlement system
The company's ordinary shares are settled in CREST, the computerised system for settling sales and purchases of shares. CREST is a voluntary system which enables shareholders, if they wish, to hold and transfer their shareholdings electronically rather than by paper. Shareholders who wish to retain their certificates are able to do so.
Personal equity plans (PEPs) and individual savings accounts (ISAs)
PEPs are no longer eligible for new subscriptions. Information about investing in BT shares through an ISA may be obtained from Halifax Share Dealing Limited, Westbank, Water Lane, Leeds LS11 5TL (telephone 0990 33 66 44). ISAs are also offered by other organisations.
Dividends
The Board expects to recommend in respect of each financial year an interim and a final divided, which will normally be payable in February and September, respectively. The proposed 1999 final dividend will be paid on 20 September to shareholders on the register on 20 August 1999.
The dividends paid or payable on BT shares and ADSs for the last five years are shown in the following table. The dividends on the ordinary shares exclude the associated tax credit. The dividends on the ADSs paid before 5 April 1999 include the associated UK tax credit available to certain beneficial owners who are resident in the United States or Canada for tax purposes, but before deduction of UK withholding taxes. The amounts shown are not those that were actually paid to holders of ADSs. For the tax treatment of dividends paid on or after 6 April 1999 see Taxation of dividends below. Dividends have been translated from pounds sterling into US dollars using exchange rates prevailing on the date the ordinary dividends were paid.
  Per ordinary share Per ADS Per ADS
YEARS ENDED Interim Final Total Interim Final Total Interim Final Total
31 MARCH pence pence pence £ £ £ US$ US$ US$
------------------------------------------------------------ --------------------------------- -------------------------------- --------------------------------
1995 7.05 10.65 17.70 0.881 1.331 2.212 1.375 2.055 3.430
1996 7.45 11.25 18.70 0.931 1.406 2.337 1.422 2.181 3.603
1997 (a) 7.90 11.95 19.85 0.987