BT Global Services is at the forefront of two areas of the group’s growth, being ICT solutions and servicing the needs of global multi-site corporations and European multi-site organisations. The product portfolio covers a number of key ICT related areas including IP infrastructure, Customer Relationship Management (CRM), outsourcing and system integration. These are provided to customers through BT Syntegra and BT Global Solutions. The 2004 financial year results demonstrate the success of the re-integration of Concert and delivery of customer orientated ICT based services and solutions. In the 2003 financial year, the financial performance of Global Products and Global Carrier reflects the re-integration of the returning businesses as a result of the unwind of Concert.
     In the 2004 financial year BT Global Services’ turnover was £5,782 million, representing an increase of 7% compared to the prior year following an increase of 16% to £5,417 million in the 2003 financial year reflecting the returning Concert businesses. BT Global Solutions’ turnover grew by 14% in the 2004 financial year to £2,802 million. In the 2003 financial year, BT Global Solutions’ turnover grew by 10% to £2,455 million. BT Syntegra performed strongly with turnover of £721 million in the 2004 financial year, an increase of 16%, and turnover of £623 million in the 2003 financial year, an increase of 3%. In the 2004 financial year, contract wins from ICT solutions amounted to more than £7 billion. The highest profile of these were three NHS contracts expected to be worth over £2.1 billion and forming an integral part of the National Programme for Information Technology in the NHS. In the 2003 financial year, contract wins from ICT solutions amounted to more than £4.4 billion. BT Global Products’ turnover grew by 9% in the 2004 financial year to £1,831 million reflecting the growth of Multi Protocol Label Switching. In the 2003 financial year, BT Global Products’ turnover increased by 33% to £1,674 million and was mainly due to the re-integration of Concert and the growth in IPVPN products. The Global Carrier division turnover decreased by 1% in the 2004 financial year to £962 million (2003 – £974 million, 2002 – £292 million). The increase in 2003 was principally due to the re-integration of the international carrier business of the former Concert global venture.
     Continued cost reductions, in network costs as well as selling, general and administration costs, helped generate improvements in EBITDA before exceptional items in the 2004 financial year of 113% to £508 million, following an improvement of 12% in the 2003 financial year. The re-integration of the former Concert business had an adverse impact on the growth in EBITDA before exceptional items in the 2003 financial year. The 2004, 2003 and 2002 financial years include leaver costs of £33 million, £65 million and £55 million, respectively. Headcount increased by 23% to 21,200 in the 2004 financial year which includes transfers of operations from other lines of business and an increase in BT Global Solutions’ headcount due to increased outsourcing contracts. Headcount increased by 3% to 17,200 in the 2003 financial year. All major European operations achieved their target of becoming EBITDA positive during the 2003 financial year.
     The group operating loss before goodwill amortisation and exceptional items decreased by £270 million in the 2004 financial year to a loss of £105 million after increasing by £81 million to a loss of £375 million in the 2003 financial year. The loss in the 2003 financial year includes the adverse impact of the former Concert business.
     Capital expenditure for the 2004 financial year was £479 million, an increase of 8%, and £445 million in the 2003 financial year, a reduction of 28%.

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