•  9 May 2019

    Key strategic developments:

    • FTTP build targets increased from 3m to 4m premises passed by March 2021; FTTP ambition increased from 10m to 15m by mid-2020s and remains subject to conditions being right
    • EE to launch 5G imminently and on track to go live in 16 cities in 2019 with a range of device partners
    • Continued quarterly improvement in customer experience metrics; Group NPS1 up 6.5 points, Right First Time2 up 5.4%
    • Initiatives to transform our business are on track; restructuring programme achieved annualised cost savings of £875m

    Operational:

    • Openreach passed c.2m premises with Gfast and c.1.2m with FTTP; now passing c.20,000 premises with FTTP per week
    • BT Plus takeup remains encouraging with around 1 million subscribers since May 2018 launch
    • Consumer fixed ARPC down 0.3% in the quarter to £38.8 reflecting retail market competition; postpaid mobile ARPC down 0.9% in the quarter to £20.9 due to increased mix of SIM only; RGUs per address stable at 2.37
    • Mobile churn down to 1.1% reflecting improved retention and successful device launches; fixed churn flat at 1.4%

    Financial:

    • Reported revenue of £23,428m and adjusted revenue of £23,459m both down 1%4 as growth in Consumer was offset by regulated price reductions in Openreach and declines in our enterprise businesses, in particular in fixed voice
    • Reported profit before tax of £2,666m, up 2%; adjusted3 EBITDA of £7,392m, down 2%4
    • Net cash inflow from operating activities of £4,256m, down 14% mainly due to pension deficit payments, increased capital expenditure and lower EBITDA; normalised free cash flow3 of £2,440m, down 18%
    • Capital expenditure £3,963m, up £441m, of which £213m relates to BDUK grant funding deferral including the change in take-up assumption announced in Q2, and the remainder primarily to increased investment in FTTP
    • Proposed final dividend of 10.78p pence per share, giving a full-year dividend of 15.4p; unchanged on last year
    • Outlook for 2019/20: adjusted3 revenue down c.2%, adjusted3 EBITDA £7.2bn - £7.3bn, capital expenditure5 £3.7bn - £3.9bn and normalised free cash flow3 of £1.9bn - £2.1bn
    1 Group NPS measures Net Promoter Score in our retail business and Net Satisfaction in our wholesale business
    2 Measured against Group-wide ‘Right First Time’ (RFT) index
    3 See Glossary on page 2
    4 Measured against IFRS 15 pro forma comparative period in the prior year
    5 Excluding BDUK clawback

    Philip Jansen, Chief Executive, commenting on the results, said

    “BT delivered solid results for the year, in line with our guidance, with adjusted profit growth in Consumer and Global Services offset by declines in Enterprise and Openreach.

    “Since joining the company three months ago, it has become clear to me just how fundamental BT’s role is in connecting our society. While we are really well positioned in a very challenging and competitive UK market, we have a lot of work to do to ensure we remain successful and deliver long term sustainable value to our shareholders. We need to invest to improve our customer propositions and competitiveness. We need to invest to stay ahead in our fixed, mobile and core networks, and we need to invest to overhaul our business to ensure that we are using the latest systems and technology to improve our efficiency and become more agile.

    “Our aim is to deliver the best converged network and be the leader in fixed ultrafast and mobile 5G networks. We are increasingly confident in the environment for investment in the UK. We have already announced the first 16 UK cities for 5G investment. Today we are announcing an increased target to pass 4m premises with ultrafast FTTP technology by 2020/21, up from 3m, and an ambition to pass 15 million premises by the mid-2020s, up from 10 million, if the conditions are right, especially the regulatory and policy enablers.

    “For 2018/19 the Board has decided to hold the full year dividend unchanged at 15.4p per share. The Board also expects to hold the dividend unchanged in respect of the current financial year given our outlook for earnings and cash flow.”

  • 26 March 2019

  • 21 March 2019

  •  31 January 2019

    Key strategic developments:

    • Ten successive quarters of improvement in Group NPS1, up 5.3 points. Right First Time2 up 3.2%
    • Consumer launched the next version of its converged product BT Plus, guaranteeing wi-fi in every room
    • EE demonstrated its 5G capability in London and will roll out to the busiest parts of 16 UK cities in 2019
    • Openreach is currently deploying FTTP in 14 locations under its ‘Fibre First’ programme and has recently announced a further 11 locations, bringing the total to 25
    • Initiatives to transform our operating model are on track; restructuring programme removed c.800 roles in the quarter
    • Philip Jansen taking over as new Chief Executive from 1 February 2019

    Operational:

    • Openreach passed c.1.7m premises with Gfast and c.900,000 with FTTP meaning over 2.6m total ultrafast premises passed
    • Consumer fixed ARPU up 5% to £39.6, with increased mix of SIM only reducing postpaid mobile ARPU by 0.9% to £21.4
    • Fixed churn at 1.4% returning to lower levels. Mobile churn was 1.3%
    • Revenue generating unit (RGU) KPI introduced at 2.37 products per household  

    Financial results for nine months to 31 December 2018:

    • Reported revenue of £17,558m down 1%. Underlying3 revenue down 0.9%4 as growth in our Consumer business was offset by regulated price reductions in Openreach and declines in our enterprise businesses
    • Adjusted3 EBITDA broadly flat4 at £5,553m mainly driven by revenue growth in our Consumer business and restructuring related cost savings, offset by the revenue decline in Openreach and Enterprise
    • Reported profit before tax of £2,094m up 20%. Adjusted3 profit before tax down 1%4 at £2,487m
    • Normalised free cash flow3 of £1,737m down 11% mainly driven by increased cash capital expenditure
    • Reported capital expenditure up £239m at £2,810m primarily due to increased investment in FTTP and the increase in BDUK grant funding deferral announced last quarter
    • Overall outlook reiterated notwithstanding significant market and regulatory pressures. We expect EBITDA to be around the top end of our guidance for FY 2018/19 
    1 Group NPS measures Net Promoter Score in our retail business and Net Satisfaction in our wholesale business
    2 Measured against Group-wide ‘Right First Time’ (RFT) index
    3 See Glossary on page 5
    4 Measured against IFRS 15 pro forma comparative period in the prior year

    Gavin Patterson, Chief Executive, commenting on the trading update, said

    “We have continued to deliver consistently against our strategic objectives in a tough market, resulting in another sound quarter of operational and financial performance.

    “In Consumer we launched the next version of our converged consumer offering, BT Plus with Complete Wi-Fi. Following successful trials in London we announced our plan to launch 5G in 16 UK cities in 2019. Openreach accelerated its FTTP commissioning and has now passed 890,000 premises. We are ready to expand our FTTP programme up to and beyond 10 million premises if the conditions are right.

    “Our overall outlook for the full year remains unchanged, with EBITDA around the top end of our guidance for FY 2018/19. We continue to expect regulation, market dynamics, cost inflation and legacy product declines to impact in the short term before being more than offset by improved trading and cost transformation by our 2020/21 financial year.

    “I am handing over the business with good momentum behind its ongoing transformation programme and wish my colleagues all the best for the future.”

  • 17 January 2019

    Pro forma KPIs

  • 30 November 2018

  • 1 November 2018

    Key strategic developments:

    • Philip Jansen announced as new Chief Executive from 1 February 2019 – see separate press release on 25 October
    • Nine quarters of successive improvement in customer experience metrics; Group NPS1 up 3.6 points and Right First Time2 up 2.7%
    • Majority of major and a number of smaller communications provider customers signed up to Openreach’s volume related discounts
    • 5G capability demonstrated by EE from a live site in Canary Wharf
    • Initiatives to transform our operating model on track; restructuring programme removed c.2,000 roles in the first half

    Operational:

    • Nearly 2m total ultrafast premises passed; Openreach currently building FTTP to c.13,000 premises per week
    • Consumer fixed ARPU up 1% to £38.3, with increased mix of SIM only reducing postpaid mobile ARPU by 0.5% to £22.0
    • Mobile churn remains low at 1.2%; fixed churn increased to 1.6% reflecting the impact of recent price increases

    Financial results for nine months to 31 December 2018:

    • Reported revenue of £11,588m down 2% and adjusted3 revenue of £11,624m down 1%4 as growth in our consumer business was offset by regulated price reductions in Openreach and declines in our enterprise businesses
    • Reported profit before tax of £1,340m and adjusted3 EBITDA of £3,675m, up 2%4, mainly driven by higher volume and mix of high-end smartphones in our consumer business and restructuring related cost savings
    • Net cash inflow from operating activities of £754m down £1,831m mainly due to £2bn contribution to BTPS. Normalised free cash flow3 of £974m down 22% due to increased cash capital expenditure and timing of working capital movements
    • Reported capital expenditure up £140m at £1,833m due primarily to the increase in BDUK grant funding deferral following take up of Openreach’s volume related discounts
    • Interim dividend of 4.62 pence per share; 30% of last year’s full-year dividend of 15.4 pence per share
    • Overall outlook maintained. Based on current trading, we expect EBITDA to be in the upper half of our £7.3-£7.4bn range
    1 Group NPS measures Net Promoter Score in our retail business and Net Satisfaction in our wholesale business
    2 Measured against Group-wide ‘Right First Time’ (RFT) index
    3 See Glossary
    4 Measured against IFRS 15 pro forma comparative period in the prior year

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

    “We continued to generate positive momentum in the second quarter resulting in encouraging results for the half year. We are successfully delivering against the core pillars of our strategy with improved customer experience metrics, accelerating ultrafast deployment and positive progress towards transforming our operating model.

    “In Consumer, we continue to see strong sales of our converged product, BT Plus, and have seen good mobile sales following new handset launches. Last month EE demonstrated 5G capability from a live site in Canary Wharf. We have maintained momentum in our enterprise businesses despite legacy product declines.

    “On 1 October we completed the transfer of 31,000 employees into Openreach, a key part of fulfilling our DCR commitments. Openreach has signed up the majority of its major and a number of its smaller communications providers to its new volume related discounts which should increase average broadband speeds across the UK. We are making positive progress on the key enablers to ensure that we can secure a fair return on our FTTP investment, and are ready to expand the FTTP programme up to and beyond 10 million premises if the conditions are right.

    “Our strategy is delivering, with benefits evident from the steps we’ve been taking to simplify and strengthen the business and improve efficiency. Despite increasingly competitive fixed, mobile and networking markets and continued declines in legacy products there is no change in our overall outlook for the full year. Based on current trading, we expect EBITDA to be in the upper half of our £7.3 - £7.4 billion range.”

    Consensus

  • 12 October 2018

    Presentation from the investor & analyst field trip to Openreach’s Bradford fibre engineer training school and Leeds FTTP build.

  • 19 September 2018

    Slides

    Webcast replay

    Audio replay

  • 27 July 2018

    Key strategic developments:

    • Successfully launched new converged products including BT Plus and 4G Assure
    • EE to launch the UK’s first live 5G trial network in East London in October
    • Future Telecoms Infrastructure Review conclusion and Ofcom’s approach to future regulation provide positive progress towards enabling fair returns for infrastructure investment
    • Openreach announced new wholesale pricing discounts to accelerate superfast and ultrafast uptake
    • Continued improvement in customer experience metrics; Group NPS1 up 1.9 points and Right First Time2 up 3.1%
    • Initiatives to transform our operating model on track; new Enterprise senior leadership team announced

    Operational:

    • Over 1.7m total ultrafast premises passed; currently building FTTP to c.10,000 premises per week
    • Monthly fixed ARPU up 1% to £37.9, with increased mix of SIM only reducing postpaid mobile ARPU by 1% to £21.7; churn remains low at 1.2%
    • Mobile customers up 4% in Business and Public Sector. External broadband lines down 6% in Wholesale and Ventures and 3% in Business and Public Sector

    Financial results

    • Reported revenue of £5,715m. Underlying3 revenue down 2%4 as regulated price reductions in Openreach and declines in our enterprise businesses offset growth in our consumer business
    • Adjusted3 EBITDA up 1%4 to £1,800m mainly driven by stronger handset margins in our consumer business and restructuring related cost savings
    • Reported profit before tax of £704m. Adjusted3 profit before tax up 3%4 at £816m
    • Normalised free cash flow3 of £507m down 9% mainly driven by increased cash capital expenditure partly offset by timing of working capital movements
    • Reported capital expenditure broadly flat at £839m

    Gavin Patterson, Chief Executive, commenting on the trading update, said

    "We’ve made a good start to the year. We are making positive progress against our strategy. Our customer experience metrics continue to improve and we have seen the successful launch of new converged products including BT Plus, our first Consumer converged offering and 4G Assure, for business customers. Initiatives to transform our operating model have seen a gross reduction in c.900 roles across the Group and improved cost performance.

    "EE continues to maintain its network leadership and will switch on the UK’s first live 5G network trial in October. Openreach continues its FTTP network deployment and is currently building to c.10,000 premises per week. New Openreach wholesale pricing will incentivise communications providers to encourage more of their customers onto better services and ultimately move the vast majority of Britain’s homes and businesses onto superfast and ultrafast platforms. We welcome the initial outcome of DCMS’ Future Telecoms Infrastructure Review and Ofcom’s approach to future regulation and look forward to further engagement with all our key stakeholders to ensure greater clarity, certainty and support as we look to realise our broader investment ambitions.

    "Our outlook for the year remains unchanged."

    Consensus

  • 25 June 2018

    BT provides IFRS 15 and new KPI pro forma historical disclosures and confirms unchanged outlook for 2018/19 under IFRS 15.

    News release

    IFRS 15 applied to BT

    Pro forma IFRS 15

    Pro forma new KPIs

  • 17 May 2018

  • 26 April 2018