|
First quarter to 30 June 2014
|
|||
|
£m
|
Change
|
||
|
Revenue1
|
4,354
|
(2)%
|
|
|
Underlying revenue2 excluding transit
|
0.5%
|
||
|
EBITDA1
|
1,435
|
0%
|
|
|
Profit before tax
|
- adjusted1
|
638
|
7%
|
|
- reported
|
546
|
22%
|
|
|
Earnings per share
|
- adjusted1
|
6.5p
|
10%
|
|
- reported
|
5.6p
|
27%
|
|
|
Normalised free cash flow3
|
122
|
£182m
|
|
|
Net debt
|
7,079
|
£(979)m
|
|
|
|
· Underlying revenue excluding transit up 0.5%
|
|
|
· Cost transformation running at a similar pace to last financial year; underlying operating costs4 excluding transit and BT Sport down 3%
|
|
|
· EBITDA1 flat and earnings per share1 up 10%
|
|
|
· BT Global Services and BT Business both grew EBITDA despite lower revenue
|
|
|
· Our outlook remains unchanged
|
|
First quarter to 30 June
|
|||
|
2014
|
2013
|
Change
|
|
|
£m
|
£m
|
%
|
|
|
Revenue
|
|||
|
- adjusted1
|
4,354
|
4,449
|
(2)
|
|
- reported
|
4,354
|
4,449
|
(2)
|
|
- underlying revenue excluding transit
|
0.5
|
||
|
EBITDA
|
|||
|
- adjusted1
|
1,435
|
1,440
|
0
|
|
- reported
|
1,391
|
1,356
|
3
|
|
Operating profit
|
|||
|
- adjusted1
|
783
|
743
|
5
|
|
- reported
|
739
|
659
|
12
|
|
Profit before tax
|
|||
|
- adjusted1
|
638
|
595
|
7
|
|
- reported
|
546
|
449
|
22
|
|
Earnings per share
|
|||
|
- adjusted1
|
6.5p
|
5.9p
|
10
|
|
- reported
|
5.6p
|
4.4p
|
27
|
|
Capital expenditure2
|
516
|
596
|
(13)
|
|
Normalised free cash flow3
|
122
|
(60)
|
n/m
|
|
Net debt
|
7,079
|
8,058
|
£(979)m
|
|
Revenue
|
EBITDA
|
Free cash flow3
|
|||||||
|
First quarter to 30 June
|
2014
|
20134
|
Change
|
2014
|
20134
|
Change
|
2014
|
20134
|
Change
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
|
BT Global Services
|
1,647
|
1,752
|
(6)
|
213
|
210
|
1
|
(337)
|
(262)
|
(29)
|
|
BT Business
|
762
|
785
|
(3)
|
240
|
236
|
2
|
190
|
109
|
74
|
|
BT Consumer
|
1,046
|
950
|
10
|
238
|
231
|
3
|
227
|
146
|
55
|
|
BT Wholesale
|
525
|
638
|
(18)
|
126
|
157
|
(20)
|
11
|
(31)
|
n/m
|
|
Openreach
|
1,245
|
1,245
|
0
|
624
|
605
|
3
|
298
|
269
|
11
|
|
Other and intra-group items
|
(871)
|
(921)
|
5
|
(6)
|
1
|
n/m
|
(267)
|
(291)
|
8
|
|
Total
|
4,354
|
4,449
|
(2)
|
1,435
|
1,440
|
0
|
122
|
(60)
|
n/m
|
|
|
1 Before specific items
|
|
|
2 Before purchases of telecommunications licences
|
|
|
3 Before specific items, purchases of telecommunications licences, pension deficit payments and the cash tax benefit of pension deficit payments
|
|
|
4 Certain results have been restated. See Note 1 to the condensed consolidated financial statements
|
|
|
|
|
|
Notes:
|
|
1.
|
The commentary focuses on the trading results on an adjusted basis, which is a non-GAAP measure, being before specific items. Unless otherwise stated, revenue, operating costs, earnings before interest, tax, depreciation and amortisation (EBITDA), operating profit, profit before tax, net finance expense, earnings per share (EPS) and normalised free cash flow are measured before specific items. This is consistent with the way that financial performance is measured by management and reported to the Board and the Operating Committee and assists in providing a meaningful analysis of the trading results of the group. The directors believe that presentation of the group's results in this way is relevant to the understanding of the group's financial performance as specific items are those that in management's judgement need to be disclosed by virtue of their size, nature or incidence. In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. Specific items may not be comparable with similarly titled measures used by other companies. Reported revenue, reported operating costs, reported EBITDA, reported operating profit, reported profit before tax, reported net finance expense, reported EPS and reported free cash flow are the equivalent unadjusted or statutory measures.
|
|
|
|
|
2.
|
Trends in underlying revenue, trends in underlying operating costs, and underlying EBITDA are non-GAAP measures which seek to reflect the underlying performance of the group that will contribute to long-term profitable growth and as such exclude the impact of acquisitions and disposals, foreign exchange movements and any specific items. We focus on the trends in underlying revenue and underlying operating costs excluding transit as transit traffic is low-margin and is significantly affected by reductions in mobile termination rates.
|
|
|
|