IRVING, Texas, Jan. 30, 2015 /PRNewswire/ -- BT Group plc (BT.L)
today announced its results for the third quarter and nine months
to 31 December 2014.
|
|
Third quarter
to
31 December 2014
|
Nine months
to
31 December 2014
|
|
|
£m
|
Change
|
£m
|
Change
|
Revenue1
|
|
4,475
|
(3)%
|
13,212
|
(2)%
|
Underlying
revenue2 excluding transit
|
|
(1.0)%
|
|
(0.1)%
|
EBITDA1
|
|
1,567
|
2%
|
4,452
|
1%
|
Profit before
tax
|
-
adjusted1
|
814
|
13%
|
2,142
|
11%
|
|
- reported
|
694
|
12%
|
1,803
|
15%
|
Earnings per
share
|
-
adjusted1
|
8.0p
|
10%
|
21.4p
|
12%
|
|
- reported
|
6.9p
|
10%
|
18.1p
|
(2)%
|
Normalised free cash
flow3
|
908
|
£354m
|
1,563
|
£459m
|
Net debt
|
|
|
|
6,202
|
£(1,438)m
|
Gavin Patterson, Chief
Executive, commenting on the results, said:
"This quarter we have delivered good growth in profit before tax
and strong free cash flow.
"Openreach achieved the highest growth in the number of
landlines on record. It was also our best ever quarter for
fibre broadband net additions. All the major communications
providers are responding to the strong market demand for fibre
broadband, helping to drive take-up in what is already a very
competitive market.
"Our superfast fibre broadband network now covers around
three-quarters of the UK. BT has been at the forefront of
fibre innovation and investment, from which all communications
providers benefit. We aim to keep it that way. So today
we're announcing large-scale pilots this summer of ultrafast
broadband with G.fast. We now think we can deploy this
technology at scale which will enable us to deliver ultrafast
speeds of up to 500Mbps to most of the UK within a
decade.
"I am pleased that we have agreed the 2014 triennial funding
valuation and recovery plan with the Trustee of the BT Pension
Scheme. The funding deficit is £7.0bn at 30 June 2014, an increase from 2011 reflecting
the low interest rate environment. Over the next three years
we will pay £2.0bn into the scheme, which is less than we paid over
the previous three years. We have agreed a 16 year recovery
plan reflecting the strength and sustainability of our future cash
flow generation.
"Mobility is a key growth area for us. We are making good
progress on our due diligence in relation to a possible acquisition
of EE and will make further announcements in due course. In
the meantime, our Consumer mobile launch plans remain on
track."
Financial highlights for the third quarter:
- Underlying revenue2 excluding transit down 1%
- Underlying operating costs4 excluding transit down
3% reflecting the benefit of our cost transformation
activities
- EBITDA1 up 2% and earnings per share1 up
10%
- Normalised free cash flow3 of £908m, up 64%
- Outlook reaffirmed
1 Before specific items. Specific items are
defined on page 3
2 Excludes specific items, foreign exchange movements
and the effect of acquisitions and disposals
3 Before specific items, pension deficit payments and
the cash tax benefit of pension deficit payments
4 Excludes specific items, foreign exchange movements
and the effect of acquisitions and disposals, and is before
depreciation and amortisation
GROUP RESULTS FOR THE THIRD QUARTER AND NINE MONTHS TO
31 DECEMBER 2014
|
Third
quarter to 31 December
|
Nine months to 31
December
|
|
2014
|
2013
|
Change
|
2014
|
2013
|
Change
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Revenue
|
|
|
|
|
|
|
-
adjusted1
|
4,475
|
4,599
|
(3)
|
13,212
|
13,539
|
(2)
|
- reported
|
4,475
|
4,599
|
(3)
|
13,270
|
13,539
|
(2)
|
- underlying revenue
excluding transit
|
|
|
(1.0)
|
|
|
(0.1)
|
EBITDA
|
|
|
|
|
|
|
-
adjusted1
|
1,567
|
1,537
|
2
|
4,452
|
4,411
|
1
|
- reported
|
1,519
|
1,491
|
2
|
4,306
|
4,229
|
2
|
Operating
profit
|
|
|
|
|
|
|
-
adjusted1
|
949
|
867
|
9
|
2,564
|
2,367
|
8
|
- reported
|
901
|
821
|
10
|
2,418
|
2,185
|
11
|
Profit before
tax
|
|
|
|
|
|
|
-
adjusted1
|
814
|
722
|
13
|
2,142
|
1,926
|
11
|
- reported
|
694
|
617
|
12
|
1,803
|
1,565
|
15
|
Earnings per
share
|
|
|
|
|
|
|
-
adjusted1
|
8.0p
|
7.3p
|
10
|
21.4p
|
19.1p
|
12
|
- reported
|
6.9p
|
6.3p
|
10
|
18.1p
|
18.5p
|
(2)
|
Capital
expenditure
|
599
|
581
|
3
|
1,648
|
1,772
|
(7)
|
Normalised free
cash flow2
|
908
|
554
|
64
|
1,563
|
1,104
|
42
|
Net
debt
|
|
|
|
6,202
|
7,640
|
£(1,438)m
|
Line of business results1
|
Revenue
|
EBITDA
|
Free cash
flow2
|
Third quarter
to
|
2014
|
20133
|
Change
|
2014
|
20133
|
Change
|
2014
|
20133
|
Change
|
31
December
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
BT Global
Services
|
1,694
|
1,847
|
(8)
|
261
|
290
|
(10)
|
52
|
111
|
(53)
|
BT Business
|
789
|
808
|
(2)
|
266
|
257
|
4
|
224
|
218
|
3
|
BT Consumer
|
1,083
|
1,014
|
7
|
251
|
175
|
43
|
274
|
99
|
177
|
BT Wholesale
|
532
|
589
|
(10)
|
136
|
146
|
(7)
|
114
|
30
|
280
|
Openreach
|
1,255
|
1,274
|
(1)
|
651
|
660
|
(1)
|
471
|
452
|
4
|
Other and intra-group
items
|
(878)
|
(933)
|
6
|
2
|
9
|
(78)
|
(227)
|
(356)
|
36
|
Total
|
4,475
|
4,599
|
(3)
|
1,567
|
1,537
|
2
|
908
|
554
|
64
|
|
|
|
|
|
|
|
|
|
|
|
1 Before specific items
2 Before specific items, pension deficit payments and
the cash tax benefit of pension deficit payments
3 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.
Full results can be found at www.btplc.com.
A conference call for analysts and investors was held at
9.00am UK today and a simultaneous
webcast will be available at www.bt.com/results
We expect to announce the fourth quarter and full year results
for 2014/15 on 7 May 2015.
About BT
BT is one of the world's leading providers of communications
services and solutions, serving customers in more than 170
countries. Its principal activities include the provision of
networked IT services globally; local, national and international
telecommunications services to its 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 five customer-facing lines of business: BT Global
Services, BT Business, BT Consumer, BT Wholesale and Openreach.
For the year ended 31 March 2014,
BT Group's reported revenue was £18,287m with reported profit
before taxation of £2,312m.
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
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SOURCE BT