• 2 December 2020

    Webcast

  • 4 November 2020

  • 29 October 2020

    Key strategic developments:

    • All of Openreach's major CP1 customers now selling FTTP with strong increase in sales in Q2
    • Consumer aligns pricing policies across all products and services to CPI plus 3.9% per annum to provide consistent, predictable pricing for new and regrading customers and to support network investment

    Operational:

    • Strong operating performance despite the ongoing impact of Covid-19
    • FTTP rollout reached record levels in Q2 with run-rate of 40k premises per week; 3.5m premises passed to date
    • Openreach to stop selling copper products to c.1.8m FTTP-enabled premises by September 2021 latest 
    • 5G-ready customer base now over 1m and 5G now live in 112 towns and cities
    • Strong increase in Consumer FTTP customer base up 60% year on year; fixed and mobile convergence at 21.4%
    • Enterprise agrees landmark partnership with Belfast Harbour to deploy 5G Private Network
    • Modernisation programme delivers £352m gross annualised savings at a cost of £163m

    Financial:

    • Revenue relatively resilient at £10,590m, down 8%, primarily due to the impact of Covid-19 including reduced BT Sport revenue and a reduction in business activity in our enterprise units, and declines in legacy products
    • Adjusted2 EBITDA £3,721m, down 5%, driven by the fall in revenue, partly offset by sports rights rebates, savings from our modernisation programme and other cost initiatives including Covid-19 mitigating actions
    • Reported profit before tax £1,062m, down 20%, driven primarily by reduced EBITDA
    • Net cash inflow from operating activities £2,713m;  normalised free cash flow2 £422m, down 30%, primarily due to reduced EBITDA and offsetting movements in working capital and timing of tax payments
    • Capital expenditure £1,969m, up 5%, primarily driven by fixed and mobile network investment
    • Lower end of the adjusted2 EBITDA outlook range for 2020/21 raised to £7.3bn; revised range £7.3bn - £7.5bn
    • Adjusted2 EBITDA outlook of at least £7.9bn in 2022/23, underpins planned reinstated dividend from 2021/22 and value-creating investment plans

    1 Communications provider
    2 See Glossary on page 2

     

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

    "BT delivered financial results in-line with expectations for the first half of the year, thanks to strong operational performance during exceptional circumstances. Customer demand during the pandemic has shown how critical our networks have become, and our significant network investments have helped us double the number of Openreach’s FTTP orders compared to this time last year and have seen our leading 5G network expand to 112 towns and cities across the UK.

    "We continue to invest to make BT more competitive and I’m pleased to see the quality of our products and services improving. At the same time we are firmly on track with the delivery of our modernisation programme and have delivered £352m in cost savings in the first half of the year.

    "This performance has given us confidence to raise the lower end of our EBITDA outlook range for this year and publish an EBITDA expectation of at least £7.9bn for 2022/23, with sustainable growth from this level forward. This growth will be driven by the continued recovery from Covid-19, enhanced by sales of our converged and growth products, and by significant savings from our modernisation and cost saving programme. In combination these factors will more than offset legacy product declines.

    "The growth in EBITDA underpins the planned reinstatement of our dividend next year whilst ensuring that we can continue to drive value-creating investments in our networks and products."

    Philip Jansen, Chief Executive sums up BT's half year results

  • 8 October 2020

  • 31 July 2020

    Key strategic developments:

    • BT delivered a strong operating performance and remains committed to supporting our customers and colleagues. Financial results impacted by Covid-19
    • Openreach committed to build FTTP to 3.2m premises in rural areas by 2025/26, subject to enablers including extension of indexation across the whole country. Continued progress towards 20m FTTP target
    • Openreach to stop selling copper products to c.1.2m FTTP-enabled premises in 117 exchange areas from June 2021
    • Further work required to comply with additional restrictions on the use of Huawei equipment but no anticipated impact on coverage or rollout of 5G and full fibre; cost expected to be absorbed within previously reported estimate of £500m
    • Enterprise launched major new scheme to support small businesses in being better positioned for growth following Covid-19
    • 16 successive quarters of improvement in Group NPS1
    • Rob Shuter appointed CEO of Enterprise unit; Gerry McQuade to retire from BT

    Operational:

    • Openreach continues FTTP rollout with 3m FTTP premises now passed; on track to achieve 4.5m by March 2021
    • Consumer fixed ARPC £36.4, down 4% year on year due to continued market competition and residential BT Sport revenue decline; postpaid mobile ARPC £19.6, down 5% due to decline in roaming and out of bundle revenues, and continued trend towards SIM-only; RGUs per address 2.41
    • Postpaid mobile and fixed churn both down to 1% in Q1 due to low market activity during lockdown

    Financial:

    • Revenue £5,248m, down 7% primarily due to the impact of Covid-19, including reduced BT Sport revenue and a reduction in business activity in our enterprise units
    • Adjusted1 EBITDA £1,813m, down 7%, driven by the fall in revenue and continued investment in customer experience, partly offset by Covid-19 mitigating actions and savings from our transformation programmes
    • Reported profit before tax £561m, down 13%, due to reduced EBITDA, higher interest expense, and higher depreciation and amortisation charges; partly offset by the gain on disposal of our Spanish operations
    • Negative Q1 normalised free cash flow1 reflects Covid-19 pressures on EBITDA combined with the usual Q1 pressures on working capital due to the timing of public sector collections, capex creditors and payment of management bonus. Normalised free cash flow1 declined by £372m to an outflow of £(49)m driven by Covid-19 impacts on EBITDA and extended customer payment terms, as well as some one-off cash flows which benefited the prior year including the upfront cash payment received from Cellnex
    • Capital expenditure broadly flat at £927m, with higher network investment offset by lower customer and non-network infrastructure spend
    • Outlook for 2020/21: adjusted1 revenue down 5% - 6%; adjusted1 EBITDA £7.2bn - £7.5bn; reported capital expenditure £4.0bn - £4.3bn; normalised free cash flow1£1.2bn - £1.5bn

    1 See Glossary on page 5

     

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

    "Despite Covid-19, BT delivered a strong operating performance in the first quarter and delivered a relatively resilient set of financial results. We continue to invest in the long-term future of the business. We continued to support our customers and colleagues through the crisis, including offering NHS workers on EE unlimited mobile data, and discounts for pubs and clubs on BT Sport until the end of the year. During the quarter Openreach resumed provisioning and repair activity in customer premises, we re-opened the majority of our retail stores, and we saw the restart of the Premier League on BT Sport. Enterprise has today launched the BT Small Business Support Scheme, which will boost cash flow, connectivity and confidence among this critical segment of the economy over the coming months.

    "Throughout this crisis we remain focussed on delivering against our strategic goals to deliver long-term value for shareholders. We reached an important milestone with 3m FTTP premises now passed, welcomed Ofcom’s consultation on our rural FTTP build proposal, and have now deployed 5G to 100 towns and cities. Together with continued improvements in customer experience and our modernisation programme, we are positively positioned for the future.

    "Although uncertainties remain, we are now able to provide an outlook for this financial year. Despite our strong operational performance in the first three months of the year, it is clear that Covid-19 will continue to impact our business as the full economic consequences unfold. Beyond this year and based on current expectations, we expect to return the business to sustainable adjusted EBITDA growth, driven in part by the recovery from Covid-19."

    Slides

  • 7 July 2020

  • 29 June 2020