IRVING, Texas, July 30, 2015 /PRNewswire/ -- BT Group plc (BT.L)
today announced its results for the first quarter to 30 June 2015.
|
|
First quarter to 30
June 2015
|
|
|
£m
|
Change
|
Revenue1
|
|
4,278
|
(2)%
|
Change in underlying
revenue2 excluding transit
|
|
0%
|
EBITDA1
|
|
1,449
|
1%
|
Profit before
tax
|
-
adjusted1
|
694
|
9%
|
|
- reported
|
632
|
16%
|
Earnings per
share
|
-
adjusted1
|
6.7p
|
3%
|
|
- reported
|
6.1p
|
9%
|
Normalised free cash
flow3
|
|
106
|
£(16)m
|
Net debt
|
|
5,819
|
£(1,260)m
|
Gavin Patterson, Chief
Executive, commenting on the results, said:
"This is an
exciting time at BT. We continue to invest heavily in our
superfast fibre broadband network. It now reaches around 80%
of all UK premises and we will work with government to help take
fibre broadband to 95% of the country by the end of 2017. Our
technical trials of ultrafast broadband using G.fast are
progressing well; we're on target to start large-scale customer
trials this summer.
"Our mobile plans have got off to a good start with more than
100,000 consumer mobile customers signed up in the first three
months. We're also looking forward to completing our
acquisition of EE, which will allow us to create a true UK digital
champion, providing customers with greater choice and value and
helping to deliver the UK's connected future.
"We're launching BT Sport Europe in the next few days, the new
home of UEFA Champions League football, which is free for our BT TV
customers. We are also leading the way on Ultra HD TV.
Our BT Sport Ultra HD channel will be the first live sports channel
in Europe offering picture quality
four times that of normal high definition.
"We have also invested further in improving customer service and
Openreach is running ahead of all 60 minimum service levels set by
Ofcom for this year. And we are engaging with Ofcom as part
of its Strategic Review of Digital Communications which offers
scope for deregulation and the potential to create a more level
playing field in pay-TV.
"The investments we are making in our business and customer
service are building a strong platform for growth. And our
financial results show we're on track to achieve our outlook for
the full year."
Key points for the quarter:
- Underlying revenue2 excluding transit was flat, an
improvement on the 1.3% decline last quarter
- Underlying operating costs4 excluding transit down
1%
- EBITDA1 up 1% and earnings per share1 up
3%
- Superfast fibre broadband available to more than 23m premises,
around 80% of the UK
- 20% superfast fibre broadband take-up; new base-case assumption
of reaching 28% penetration
1 Before specific items.
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 FIRST QUARTER TO 30 JUNE 2015
|
First quarter to
30 June
|
|
2015
|
2014
|
Change
|
|
£m
|
£m
|
%
|
Revenue
|
|
|
|
-
adjusted1
|
4,278
|
4,354
|
(2)
|
- reported
|
4,360
|
4,354
|
0
|
- change in
underlying revenue2 excluding transit
|
|
|
0
|
EBITDA
|
|
|
|
-
adjusted1
|
1,449
|
1,435
|
1
|
- reported
|
1,442
|
1,391
|
4
|
Operating
profit
|
|
|
|
-
adjusted1
|
821
|
783
|
5
|
- reported
|
814
|
739
|
10
|
Profit before
tax
|
|
|
|
-
adjusted1
|
694
|
638
|
9
|
- reported
|
632
|
546
|
16
|
Earnings per
share
|
|
|
|
-
adjusted1
|
6.7p
|
6.5p
|
3
|
- reported
|
6.1p
|
5.6p
|
9
|
Capital
expenditure
|
658
|
516
|
28
|
Normalised free
cash flow3
|
106
|
122
|
(13)
|
Net
debt
|
5,819
|
7,079
|
£(1,260)m
|
Note: In the first quarter to 30 June
2015, reported revenue and operating costs include transit
revenue and costs of £82m, being the impact of ladder pricing
agreements relating to prior years following a Supreme Court
judgment last year.
Line of business results1
|
Revenue
|
EBITDA
|
Free cash
flow3
|
First quarter to 30
June
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
BT Global
Services
|
1,543
|
1,647
|
(6)
|
190
|
213
|
(11)
|
(292)
|
(337)
|
13
|
BT Business
|
749
|
762
|
(2)
|
240
|
240
|
0
|
116
|
190
|
(39)
|
BT Consumer
|
1,074
|
1,046
|
3
|
254
|
238
|
7
|
211
|
227
|
(7)
|
BT Wholesale
|
530
|
525
|
1
|
140
|
126
|
11
|
117
|
11
|
n/m
|
Openreach
|
1,249
|
1,245
|
0
|
639
|
624
|
2
|
270
|
298
|
(9)
|
Other and intra-group
items
|
(867)
|
(871)
|
0
|
(14)
|
(6)
|
(133)
|
(316)
|
(267)
|
(18)
|
Total
|
4,278
|
4,354
|
(2)
|
1,449
|
1,435
|
1
|
106
|
122
|
(13)
|
1 Before specific items
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
n/m = not meaningful
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 to 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
sustainable 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.
|
We held a conference call for analysts and investors at
9.00am today and a simultaneous
webcast was available at www.bt.com/results
We are scheduled to announce the second quarter and half year
results for 2015/16 on Thursday 29 October
2015.
About BT
BT's purpose is to use the power of communications to make a
better world. It 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 2015,
BT Group's reported revenue was £17,979m with reported profit
before taxation of £2,645m.
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
Forward-looking statements – caution advised
Certain statements in this results release are forward-looking
and are made in reliance on the safe harbour provisions of the US
Private Securities Litigation Reform Act of 1995. These
statements include, without limitation, those concerning: our
2015/16 outlook including growth in revenue, EBITDA and free cash
flow; growing dividends and continued share buyback; our credit
rating; cost transformation; our investment in superfast fibre,
fibre broadband penetration, and ultrafast broadband trialling; and
our investment in TV and BT Sport, and our BT Sport Europe and BT
Sport Ultra HD TV offerings.
Although BT believes that the expectations reflected in these
forward-looking statements are reasonable, it can give no assurance
that these expectations will prove to have been correct.
Because these statements involve risks and uncertainties, actual
results may differ materially from those expressed or implied by
these forward-looking statements.
Factors that could cause differences between actual results and
those implied by the forward-looking statements include, but are
not limited to: material adverse changes in economic conditions in
the markets served by BT; future regulatory and legal actions,
decisions, outcomes of appeal and conditions or requirements in
BT's operating areas, including competition from others; selection
by BT and its lines of business of the appropriate trading and
marketing models for its products and services; fluctuations in
foreign currency exchange rates and interest rates; technological
innovations, including the cost of developing new products,
networks and solutions and the need to increase expenditures for
improving the quality of service; prolonged adverse weather
conditions resulting in a material increase in overtime, staff or
other costs, or impact on customer service; developments in the
convergence of technologies; the anticipated benefits and
advantages of new technologies, products and services not being
realised; the timing of entry and profitability of BT in certain
communications markets; significant changes in market shares for BT
and its principal products and services; the underlying assumptions
and estimates made in respect of major customer contracts proving
unreliable; uncertainties and assumptions relating to the planned
EE acquisition, conditions of the acquisition not being satisfied
and the anticipated synergies, benefits and return on investment
not being realised; and general financial market conditions
affecting BT's performance and ability to raise finance.
BT undertakes no obligation to update any forward-looking
statements whether as a result of new information, future events or
otherwise.
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visit:http://www.prnewswire.com/news-releases/bt-group-plc-results-for-the-first-quarter-to-30-june-2015-300121366.html
SOURCE BT Group plc