• Key points for the fourth quarter:

    • Full year results in line with or ahead of our outlook for the year
    • Revenue of £20bn in line with our outlook, underlying revenue excluding transit down 3% in the year
    • Operating cost savings of £1.1bn in the year, ahead of our outlook of around £900m
    • Net debt reduced to £8.8bn, in line with our outlook, after pension deficit payments of £1.0bn in the year
    • Free cash flow of £2.2bn, ahead of our outlook and nearly trebled from two years ago
    • Proposed final dividend of 5.0p, up 9%, giving a full year dividend of 7.4p, up 7%
    • BT Global Services operating cash flow positive a year ahead of plan at £119m
    • IAS 19 pension deficit of £1.4bn (net of tax), down £4.3bn in the year
    • DSL broadband net additions of 252,000 in the quarter, of which BT’s retail market share was 64%

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

    “We have delivered profits and free cash flow ahead of expectations for the year, while making significant investment in the business for the future. Free cash flow has nearly trebled compared with two years ago.

    “We have consolidated our position as the leading provider of broadband in the UK with our highest quarterly share of DSL broadband net additions for eight years. BT Global Services order intake was up 10% at £7.3bn and it has turned cash flow positive a year ahead of plan. Openreach saw growth in its copper line base in the year, reversing historic trends. Our roll out of super-fast broadband is one of the most rapid in the world, passing an average of 80,000 additional premises each week and we have plans to roughly double the speed of our fibre-to-the-cabinet based service in 2012.

    “We expect to continue to grow our profits and free cash flow whilst investing to return BT to growth. These results show we are making progress, but we are well aware there remains a lot more to do.”

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  • Key points for the third quarter:

    • Revenue of £5,038m, down 3%
    • EBITDA of £1,484m, up 7%
    • Profit before tax of £531m, up 30% (after specific items, up 111%)
    • Earnings per share of 5.4p, up 32% (after specific items, up 96%)
    • Free cash flow of £515m, up 69%
    • Net debt of £8.7bn, down £1.4bn
    • DSL broadband net additions of 188,000, 53% market share
    • BT Global Services expected to generate operating cash flow of around £100m in 2010/11 and around £200m in 2011/12

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

    “Profits and cash flow in the quarter were ahead of last year. BT Retail had a good quarter with growth in business revenues and our highest share of DSL broadband net additions for eight years. Openreach benefited from a stronger broadband market and growth in its copper line base. BT Global Services is now expected to be cash flow positive this year, a year earlier than targeted.

    “These results show that we are making progress on a number of fronts. There is always more to do but our performance underpins our outlook for this year and the period to 2012/13.”

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  • Key points for the second quarter:

    • Adjusted revenue of £4,977m, down 3%
    • Adjusted EBITDA of £1,452m, up 3%
    • Adjusted profit before tax of £496m, up 13% (reported profit before tax of £406m, up 48%)
    • Adjusted earnings per share of 5.1p, up 16% (reported earnings per share down 7% due to prior year tax credit)
    • Free cash flow of £535m; £950m in the half year, up 63%
    • Net debt of £8.7bn, down by £1.2bn
    • Interim dividend of 2.4p per share, up 4%
    • 2010/11 full year outlook raised: - adjusted EBITDA expected to be around £5.8bn - free cash flow expected to be £2bn
    • Free cash flow in 2011/12 and 2012/13 expected to be above £2bn

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

    “We have made significant progress in improving profitability and cash flow, enabling us to invest in building the foundations for revenue growth in 2012/13.

    “We have increased our EBITDA outlook for the year and now expect to hit our £2bn free cash flow target two years early.

    “Global Services order intake was up 50% at £2.1bn. Our fibre roll out has passed three million premises and BT Infinity orders are now running at over 4,000 per week. BT Vision customers now stand at more than half a million, with more developments planned to enhance our offering. Our share of DSL broadband net additions was 45%, one of our highest shares ever.”

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  • Key points for the first quarter:

    • Revenue of £5,006m, down 4%
    • Operating costs reduced by £291m
    • Adjusted EBITDA of £1,399m, up 6%
    • Adjusted profit before tax of £446m, up 17%
    • Adjusted earnings per share of 4.4p, up 16%, reported earnings per share of 3.7p, up 32%
    • Free cash flow of £415m, up £537m
    • Net debt of £8.9bn, down by more than £1.6bn
    • Fibre roll out passes over 1.5m UK premises in July
    • Full year outlook remains unchanged

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

    “We have made an acceptable start to the year, delivering improved financial results while investing in the future of the business. In TV we are offering great value premium sports packages and can now compete on a more even playing field. We hit the first major milestone in our fibre roll out, passing over 1.5m premises, and we are now running at an average rate of around 100,000 premises passed every week. In BT Global Services we continue to win significant contracts due to our ability to deliver a world class service to our customers.

    “Despite the challenging environment, these financial results underpin our outlook for the full year.”

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