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  Revenue of £19,514 million, up 6%
  New wave revenue of £6,282 million, up 38%
  Profit before taxation and specific itemsa of £2,177 million, up 5%
  Earnings per share before specific itemsa of 19.5 pence, up 8%
  Net debt reduced from £7.9 billion to £7.5 billion
  Dividends of 11.9 pence per share for the year, up 14%

Year ended 31 March
In £ million unless otherwise stated
    2006     2005  

    19,514     18,429  
Operating profit
    2,495     2,992  
Profit before taxation
    2,040     2,354  
Profit for the year
    1,548     1,829  
Basic earnings per share
    18.4 p   21.5 p

Specific items (charge) credita
    (96 )   290  
Profit for the year before specific itemsa     1,644     1,539  
Basic earnings per share before specific itemsa
    19.5 p   18.1 p

Net cash inflow from operating activities
    5,387     5,574  
Capital expenditure on property, plant and equipment and software
    3,142     3,011  
Dividends per shareb
    11.9 p   10.4 p


The financial information above is discussed in the Financial review, together with the reasons for focusing on the results before specific items. The consolidated financial statements are also available.


The group adopted International Financial Reporting Standards (IFRS) with effect from 1 April 2005. The comparative data for the year ended 31 March 2005 has been restated accordingly. IAS 32, ‘Financial Instruments: Disclosure and Presentation’ (IAS 32) and IAS 39, ‘Financial Instruments: Recognition and Measurement’ (IAS 39) were adopted with effect from 1 April 2005 and the comparative data does not reflect the effect of these standards. Amounts in the years prior to the year ended 31 March 2005 are presented in accordance with generally accepted accounting principles in the United Kingdom (UK GAAP). Information prepared under IFRS is not directly comparable with that prepared under UK GAAP.

For the purposes of US reporting requirements applicable to first time adopters of IFRS, BT hereby incorporates by reference from its Annual report on Form 20-F for 2005 in the five year financial summary, the discussion of the 2005 financial year and the financial statements and supporting notes.

A number of measures quoted in this Annual Report are ‘non-GAAP’ measures. The directors believe these measures provide a more meaningful analysis of the trading results of the group and are consistent with the way financial performance is measured by management. These include EBITDA and profit before specific items, earnings per share before specific items, net debt and free cash flow. The rationale for using non-GAAP measures and reconciliations to the most directly comparable IFRS indicator are provided on: Introduction to the financial review; Accounting policies; Net debt; and Acquisitions.
Dividends per share represents the dividend proposed in respect of the relevant financial year.
Amounts presented in respect of the years ended 31 March 2004, 2003 and 2002 are prepared in accordance with UK GAAP. UK GAAP is not directly comparable with IFRS.


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