TIDMBT.A
RNS Number : 9958V
BT Group PLC
11 November 2010
11 November 2010
BT GROUP PLC
RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2010
BT Group plc (BT.L) today announces its results for the second quarter and half
year to 30 September 2010. Unless otherwise stated, the changes in results are
year on year against the second quarter or half year to 30 September 2009.
Key points for the second quarter:
· Adjusted revenue1 of GBP4,977m, down 3%
· Adjusted EBITDA1 of GBP1,452m, up 3%
· Adjusted profit before tax1 of GBP496m, up 13% (reported profit before tax
of GBP406m, up 48%)
· Adjusted earnings per share1 of 5.1p, up 16% (reported earnings per share
down 7% due to prior year tax credit)
· Free cash flow2 of GBP535m; GBP950m in the half year, up 63%
· Net debt2 of GBP8.7bn, down by GBP1.2bn
· Interim dividend of 2.4p per share, up 4%
· 2010/11 full year outlook raised:
- adjusted EBITDA1 expected to be around GBP5.8bn
- free cash flow1 expected to be GBP2bn
· Free cash flow1 in 2011/12 and 2012/13 expected to be above GBP2bn
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
GBP2bn free cash flow target two years early.
"Global Services order intake was up 50% at GBP2.1bn. 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."
1 Before specific items. Specific items are defined on page 18
2 Free cash flow and net debt are defined on page 20
RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2010
Group results
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| | Second quarter to 30 September | | Half year to 30 September |
+--------------+------------------------------------------------+----------+-----------------------------------------------+
| | 2010 | | 2009 | | Change | | 2010 | | 2009 | | Change |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| | GBPm | | GBPm | | % | | GBPm | | GBPm | | % |
| | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Revenue | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - adjusted1 | 4,977 | | 5,122 | | (3) | | 9,983 | |10,357 | | (4) |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - reported | 4,977 | | 5,070 | | (2) | | 9,983 | |10,305 | | (3) |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| EBITDA | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - adjusted1 | 1,452 | | 1,415 | | 3 | | 2,851 | | 2,741 | | 4 |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - reported | 1,381 | | 1,309 | | 6 | | 2,729 | | 2,594 | | 5 |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Operating | | | | | | | | | | | |
| profit | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - adjusted1 | 715 | | 656 | | 9 | | 1,385 | | 1,244 | | 11 |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - reported | 644 | | 550 | | 17 | | 1,263 | | 1,097 | | 15 |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Profit | | | | | | | | | | | |
| before tax | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - adjusted1 | 496 | | 440 | | 13 | | 942 | | 822 | | 15 |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - reported | 406 | | 275 | | 48 | | 781 | | 547 | | 43 |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Earnings per | | | | | | | | | | | |
| share | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - adjusted1 | 5.1p | | 4.4p | | 16 | | 9.5p | | 8.2p | | 16 |
| | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| - reported | 5.1p | | 5.5p | | (7) | | 8.8p | | 8.3p | | 6 |
| | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Interim | - | | - | | - | | 2.4p | | 2.3p | | 4 |
| dividend | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Capital | 608 | | 558 | | 9 | | 1,131 | | 1,117 | | 1 |
| expenditure | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Free cash | 535 | | 705 | | (24) | | 950 | | 583 | | 63 |
| flow | | | | | | | | | | | |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
| Net debt | - | | - | | - | | 8,704 | | 9,878 | | (12) |
+--------------+--------+----------+--------+----------+--------+----------+-------+----------+--------+----------+--------+
Line of business results
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| | Adjusted | Adjusted EBITDA1 | Operating cash |
| | revenue1 | | flow |
+------------------+----------------------------+-------------------------+------------------------+
| Second quarter | 2010 | 20092 | Change | 2010 | 20093 | Change | 2010 | 20093 | Change |
| to | | | | | | | | | |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| 30 September | GBPm | GBPm | % | GBPm | GBPm | % | GBPm | GBPm | % |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| BT Global | 1,991 | 2,024 | (2) | 138 | 95 | 45 | (28) | (103) | 73 |
| Services | | | | | | | | | |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| BT Retail | 1,929 | 2,019 | (4) | 414 | 451 | (8) | 333 | 430 | (23) |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| BT Wholesale | 1,054 | 1,109 | (5) | 326 | 344 | (5) | 222 | 212 | 5 |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| Openreach | 1,235 | 1,234 | - | 532 | 507 | 5 | 255 | 280 | (9) |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| Other and | (1,232) | (1,264) | 3 | 42 | 18 | 133 | (247) | (114) | (117) |
| intra-group | | | | | | | | | |
| items | | | | | | | | | |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
| Total | 4,977 | 5,122 | (3) | 1,452 | 1,415 | 3 | 535 | 705 | (24) |
+------------------+---------+---------+--------+--------+-------+--------+-------+-------+--------+
1 Before specific items. Specific items are defined below and analysed in Note 5
2 Adjusted for the impact of customer account moves and the impact of changes in
the internal trading model. The effect of the changes is primarily to reduce
internal revenue in both BT Wholesale and Openreach by around GBP62m per quarter
in 2010/11. There is no impact from these changes on total group revenue. In the
line of business commentaries for BT Wholesale and Openreach, revenue has been
measured against an adjusted basis taking account of the changes in the internal
trading model to enable a like for like comparison
3 Restated for the impact of customer account moves. See Note 1
Notes: Unless otherwise stated, any reference to earnings before interest, tax,
depreciation and amortisation (EBITDA), operating profit, operating costs,
profit before tax and earnings per share (EPS) are measured before specific
items. The commentary focuses on the trading results before specific items. This
is consistent with the way that financial performance is measured by management
and is 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 to similarly titled measures used by other companies.
Reported EBITDA, reported operating profit, reported profit before tax and
reported EPS are the equivalent unadjusted or statutory measures. Unless
otherwise stated, the change in results is year on year.
The income statement, cash flow statement, statements of comprehensive income
and equity and balance sheet are provided on pages 11 to 15. A reconciliation of
group operating profit to EBITDA (as defined above) is provided in Note 6. A
reconciliation of reported profit before tax (as defined above) to adjusted
profit before tax is provided in Note 7. A reconciliation of reported EPS (as
defined above) to adjusted EPS is provided in Note 8. A definition and
reconciliation of free cash flow and net debt are provided in Notes 9 and 10.
Enquiries
+-----------------------------------+-----------------------------------+
| Press office: | |
+-----------------------------------+-----------------------------------+
| Ross Cook | Tel: 020 7356 5369 |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| Investor relations: | |
+-----------------------------------+-----------------------------------+
| Catherine Nash | Tel: 020 7356 4909 |
+-----------------------------------+-----------------------------------+
A presentation for analysts and investors will be held in London at 9.00am today
and a simultaneous webcast will be available at www.bt.com/results.
Results for the third quarter to 31 December 2010 are expected to be announced
on 3 February 2011.
About BT
BT is one of the world's leading providers of communications solutions and
services operating in over 170 countries. Its principal activities include the
provision of networked IT services globally; local, national and international
telecommunications services to our customers for use at home, at work and on the
move; broadband and internet products and services and converged fixed/mobile
products and services. BT consists principally of four lines of business: BT
Global Services, BT Retail, BT Wholesale and Openreach.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc
and encompasses virtually all businesses and assets of the BT Group. BT Group
plc is listed on stock exchanges in London and New York.
For more information, visit www.btplc.com
Click on, or paste the following link into your web browser, to view the
associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/9958V_-2010-11-10.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
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