Alternative
performance measures
We assess the performance
of the group using a variety of measures, some of which are not explicitly
defined under IFRS, and are therefore termed ‘non-GAAP measures’.
These measures are in addition to, and supplement, those prepared
in accordance with IFRS. The alternative performance measures we use
include earnings before interest, tax, depreciation and amortisation
(EBITDA); EBITDA before specific items; BT Global Services EBITDA
before specific items and leaver costs, together with the associated
margin; earnings per share before specific items; operating profit
before specific items; free cash flow; and net debt. Free cash flow
and earnings per share before specific items are also the group’s
key financial performance indicators.
Why
we use each of these alternative performance measures is explained below.
Reconciliations to the nearest measure prepared in accordance with IFRS
are included within the body of the Financial review and in the financial
statements. The alternative performance measures we use may not be directly
comparable to similarly titled measures used by other companies.
<< Previous
back to top Next >>
|
