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Total shareholder return
(TSR) is the measure of the returns that a company has provided
for its shareholders, reflecting share price movements and assuming
reinvestment of dividends. It is, therefore, a good indicator
of a company’s overall performance.
Over
the past five years (as shown in the TSR chart below), BT Group’s
TSR (as adjusted for the rights issue and demerger) was negative
70% compared to a FTSE 100 TSR of negative 12%. This was primarily
due to a fall in BT’s share price which, like many stocks
in the telecoms, media and technology (TMT) sector, declined in
the first two years of the period.
In
the period between the demerger on 19 November 2001 and 31 March
2005, BT’s TSR was negative 17%, almost in line with the
FTSEurofirst 300 Telco Index (negative 16%). However, in the last
12 months, BT’s TSR has outperformed both the FTSE 100 and
FTSEurofirst 300 Telco Index with a 21.8% return compared to a
15.4% return for each of those indices.
BT’s
total shareholder return (TSR) performance vs the FTSE 100
over five financial years to 31 March 2005
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BT’s
TSR performance vs the FTSEurofirst 300 Telco Index since
demerger
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1 April 2000 =
100. Source: Datastream
The graph shows the relative TSR performance (adjusted for
the rights issue and demerger of our mobile business in the
2002 financial year) of BT and the FTSE 100. |
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19 November 2001
= 100. Source: Datastream
The graph shows the relative TSR performance of BT and the
FTSEurofirst 300 Telco Index since demerger. |
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