• Key points for the fourth quarter:

    • Full year results ahead of our outlook for the year
    • Revenue down 2% in the year, ahead of expectations
    • Total underlying cost reductions of £1,752m in the year
    • Capital expenditure reduced by 18% in the year to £2.5bn
    • Free cash flow of £1.9bn, an improvement of £1.2bn over last year
    • Net debt reduced by over £1bn in the year
    • Proposed final dividend of 4.6p, giving 6.9p for the full year

    Ian Livingston, Chief Executive, commenting,, said:

    “We have made good progress this year and have now set clear objectives for the next three years.

    “We have improved customer service, are transforming the cost base and have more than doubled free cash flow, but there is still a lot more to do.

    “We are investing in the future of our business, enhancing our TV offering and building on opportunities in our Global Services business. Assuming an acceptable environment for investment, we see the potential to roll out fibre to around two-thirds of the UK by 2015. This will take our total fibre investment to £2.5bn which will be managed within our current levels of capital expenditure.

    “During the next three year period we expect to improve our underlying revenue trends, and grow EBITDA and free cash flow, while investing in the business, supporting the pension fund, reducing net debt and paying progressive dividends.

    “We are on track with our goal of creating a better business with a better future.”

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  • Key points for the third quarter:

    • Revenue of £5,198m, down 4%
    • Adjusted EBITDA of £1,444m, up 11% largely due to improvement in BT Global Services
    • Total underlying costs down 13% in the quarter, savings of £1.6bn achieved in the nine months
    • Adjusted earnings per share of 4.6p, up 53%, reported earnings per share up 188%
    • Improvement in free cash flow to £305m inflow compared with an outflow of £32m last year
    • Pension deficit payment of £525m made in the quarter
    • Net debt down nearly £1bn compared with last year to £10.1bn
    • Expect to deliver adjusted EBITDA of around £5.7bn and free cash flow of around £1.7bn for the full year

    Ian Livingston, Chief Executive, commenting on the results, said:

    “These results show that we are making progress. There is still a lot more to be done but our commitment to improved customer service and cost transformation is starting to deliver results and freeing up resources to invest in our future. In particular, we are one of Europe’s largest investors in super-fast fibre-based broadband and this will bring huge benefits to our customers and the UK.”

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  • Key points for the second quarter:

    • Revenue of £5,122m, down 3%, or 6% excluding foreign exchange movements and acquisitions
    • Adjusted EBITDA of £1,436m, up 2% reflecting progress in all lines of business
    • Continued improvement in BT Global Services with adjusted EBITDA of £95m, up 53% on the first quarter
    • Adjusted earnings per share of 4.5p, down 8%, reported earnings per share of 5.5p, up 12%
    • Free cash flow of £705m, up £336m including a tax repayment and associated interest of £226m
    • Net debt reduced to £9.9bn
    • Total underlying costs down £932m in the half year
    • Interim dividend of 2.3p per share

    Ian Livingston, Chief Executive, commenting on the results, said:

    “We have had another quarter of progress but there remains a lot more to do. With total cost2 reductions of over £900m in the first half, we have made significant headway towards our previous target of well over £1bn for the full year. We now expect to generate at least £1.6bn of free cash flow3 this year, compared with our previous target of over £1bn.

    “We are investing in the future of the business with an enhanced and accelerated programme of fibre deployment and wider roll out of faster broadband speeds, all within our capital expenditure plans.

    “Given our operational performance, we expect to increase dividends by around 5% for the full year. The Board is declaring an interim dividend of 2.3p per share.”

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  • Key points for the first quarter:

    • Revenue up 1%, down 3% excluding foreign exchange movements and acquisitions
    • EBITDA decline of 3% due to BT Global Services
    • Rest of the group continues to perform well with EBITDA growth of 6%
    • Sequential improvement in BT Global Services with EBITDA almost double the previous quarter
    • Reduction of £357m in underlying operating costs and capital expenditure
    • Free cash flow improvement of £612m compared with the prior year, including a tax repayment of £210m
    • BT’s retail share of DSL and LLU net additions was 46% in the quarter

    Ian Livingston, Chief Executive, commenting on the results, said:

    “We have made a solid start to the year against a background of challenging trading conditions. BT Global Services is making progress although there is still much to do. The rest of the group continues to perform well generating EBITDA2 growth of 6%.

    “We are on track to deliver reductions in operating costs and capital expenditure of well over £1bn and to generate group free cash flow3 of over £1bn this year.”

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