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  • Key points for the fourth quarter:

    • Underlying revenue excluding transit up 1.2%
    • EBITDA up 2% and earnings per share up 10%
    • Underlying operating costs excluding transit up 0.5%; down 5% excluding our investments in BT Sport and the non-cash increase in the pensions operating charge
    • 347,000 net fibre connections, up 28%, of which 249,000 are BT retail customers
    • BT Global Services order intake of £2.2bn, up 13% 

    Key points for the year:

    • Underlying revenue excluding transit up 0.5%, reversing decline of 3.1% in prior year and achieving our outlook of an improved trend
    • EBITDA flat at £6,116m compared with our outlook of £6.0bn-£6.1bn
    • Normalised free cash flow of £2,450m, up £150m, ahead of our outlook of around £2.3bn
    • Underlying operating costs down 3% excluding transit, our investments in BT Sport and the non-cash increase in the pensions operating charge
    • Earnings per share up 7%
    • Net debt at £7,028m, down £769m
    • Proposed final dividend of 7.5p, up 15%, giving full year dividend of 10.9p, also up 15%

    Gavin Patterson, Chief Executive, commenting on the results, said:

    “We have made strong progress this year. Underlying revenue, adjusted profit before tax and normalised free cash flow have all grown and beaten market expectations.

    “Our investment in fibre is delivering with 1.3 million more premises taking fibre this year, almost doubling the number of homes and businesses now connected. Our rollout is ahead of schedule with our fibre network passing more than 19 million premises, around two thirds of the UK. But we are not stopping there. All of our BDUK projects are underway and will help take the coverage of all fibre networks to at least 90% of the UK, bringing significant benefits to communities across the nation.

    “BT Sport has proved very popular and we are delighted the service is now in around five million homes. For BT Consumer it underpinned a record 9% growth in revenue in the fourth quarter and the lowest line losses in over five years. We achieved an excellent 79% share of broadband5 market net additions in the quarter.

    “BT Global Services delivered a 9% increase in its order intake this year and continued to see double-digit revenue increases in the high-growth regions of the world. BT Business and BT Wholesale have also delivered decent order intakes. Our cost transformation programmes are helping to drive the strong cash flow of the group.

    “These results provide a strong platform for growth and from which to achieve our outlook for the years ahead. Our performance in the year means that we are growing our full year dividend by 15% to 10.9p and we now expect to increase our dividend by 10%-15% for each of the next two years. We continue to focus on improving the service we provide to our customers and delivering on our investments.”

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  • News release

    KPIs

  • Key points for the third quarter:

    • Underlying revenue excluding transit up 2.4% compared with a decline of 3.2% in the prior year
    • EBITDA flat at £1,537m, with cost transformation offsetting the investment in BT Sport
    • Earnings per share up 12%
    • 2013/14 EBITDA now expected to be at the upper end of the £6.0bn-£6.1bn range 

    Gavin Patterson, Chief Executive, commenting on the results, said:

    "This is an encouraging set of results, with profit before tax up 8%, earnings per share up 12% and growth in revenue.

    "Our strategic investments are delivering. It was another record quarter for fibre take-up and there are now more than 18 million premises with access to our fibre. That number will grow further as the BDUK programme progresses.

    "Fibre helps SMEs to compete and underpins our TV plans. Our direct BT Sport customer base passed 2.5 million in the quarter and helped to support 6% revenue growth in our Consumer business. We achieved some particularly strong audience figures in December and the exclusive rights to the UEFA Champions League and UEFA Europa League that we have won will further strengthen the appeal of our proposition.

    "Outside the UK our businesses in the high-growth regions of the world again delivered double-digit revenue growth.

    "The momentum on our cost transformation has enabled us to raise our EBITDA outlook for the year. It is important that we keep up the progress we are making across the group whilst continuing to focus on improving the service we provide to our customers.” 

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  • Key points for the second quarter:

    • Key revenue measure down 0.5% compared with a 5.5% decline in the prior year
    • EBITDA decline reflects the expected BT Sport investment
    • Efficiencies from cost transformation programmes running at a faster pace than in the first quarter
    • Profit before tax and earnings per share up 2%
    • Interim dividend up 13% to 3.4p
    • Outlook reaffirmed 

    Gavin Patterson, Chief Executive, commenting on the results, said:

    “These are good results, with growth in earnings per share and free cash flow.

    “This has been our strongest ever quarter for fibre take-up with Openreach net connections up 70%. Our fibre network now passes more than 17 million premises. It is open to all and many other service providers have now got behind it.

    “BT Sport has made a confident start and is already delivering for viewers. More than two million of our customers are signed up to it and our wholesale contract with Virgin Media means it is available to around four million homes in total. It is also delivering for the business, helping us achieve a record 93% share4 of broadband net adds in the quarter, our lowest line losses for five years and 4% revenue growth in our BT Retail Consumer business.

    “BT Retail’s Business division again saw good growth in IT services while BT Global Services and BT Wholesale both generated strong order books.

    “I feel privileged to be the new CEO of BT and am determined to build on the strong foundations that are already in place. These are exciting times for the company and we are determined to deliver our strategy with energy and discipline.”

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  • Key points for the first quarter:

    • Underlying revenue excluding transit down 1.1%
    • Underlying operating costs excluding transit down 1%
    • EBITDA down 1%, earnings per share up 5%
    • Now more than 500,000 BT Sport orders
    • Consumer line loss of 130,000 is the lowest in 5 years, 50% share of broadband net adds
    • 265,000 Openreach fibre broadband net connections, up 56%.
    • Outlook reaffirmed

    Gavin Patterson, Chief Executive, commenting on the results, said:

    “BT continues to make good progress, delivering another quarter of solid growth in underlying profit before tax. This is despite the impact of regulation and the significant investments we are making for the future.

    “It is early days but we are very pleased with the strong start in BT Sport. More than half a million households have now ordered BT Sport and that’s before the channels have even launched.

    “Our consumer line loss is at its lowest level in five years and we took a 50% share of the broadband4 market net additions. Our SME business grew revenues by 1%, the best performance in more than four years, and our BT Global Services order intake was up almost 50%.

    “Fibre remains at the heart of our plans and take-up is strong. Our fibre network now passes more than 16 million premises with more than 1.7 million connected.

    “I am immensely proud to have led BT over the last five years. The foundations are in place for an exciting future and I’m confident that BT will make even more progress under Gavin’s leadership and our talented team.” 

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