BT Group PLC BT.A Half Yearly Report
BT Group PLC (BT.A) - Half Yearly Report
RNS Number : 0391Q
BT Group PLC
01 November 2012
1 November 2012
BT GROUP PLC
RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2012
BT Group plc (BT.L) today announced its results for the second quarter and
half year to 30 September 2012.
Ian Livingston, Chief Executive, commenting on the results, said:
"We have delivered another solid quarter of growth in profit before tax
despite the economic conditions and regulatory impacts. We continue to make
significant investments in the future of our business and we are again
accelerating our fibre roll-out. We now expect fibre to be available to
two-thirds of UK premises during spring 2014, more than 18 months ahead of our
original schedule, and we are recruiting more than 1,000 engineers in 2012 to
help deliver this.
"Over the summer we helped to deliver the most connected Olympic and
Paralympic Games ever and I am proud of the part that our people played in its
success.
"Our confidence in the future of our business is demonstrated by the 15%
increase in the interim dividend."
Second quarter and half year results:
Second quarter Half year
to 30 September to 30 September
2012 2012
£m Change £m Change
Revenue^1 4,474 (9)% 8,958 (7)%
Underlying revenue excluding transit (5)% (4)%
EBITDA^1 1,497 flat 2,960 1%
Profit before tax^1 608 7% 1,186 8%
Earnings per share - adjusted^1 6.0p 7% 11.7p 8%
- 7.2p 13% 13.0p 15%
reported
Interim dividend 15%
3.0p
Normalised^2 free cash flow £(247)m 192 £(572)m
316
Net debt 9,037 £720m
Key points:
· More than 12m premises passed by fibre with over 950,000 now connected
and growing strongly
· 47% share of DSL, LLU and fibre broadband market net additions
· For the 2013 financial year we expect
· underlying revenue excluding transit to show an improved trend for the
second half of the year compared with the first half, but not for the year as
a whole
· to grow adjusted EBITDA and deliver normalised free cash flow broadly
level with 2012
^1 Before specific items
^2 Before specific items, pension deficit payments and the cash tax benefit of
pension deficit payments
RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2012
Group results
Second quarter to 30 September Half year to 30
September
2012 2011 Change 2012 2011 Change
£m % £m £m %
£m
Revenue
- adjusted^1
4,474 4,894 (9) 8,958 9,658 (7)
- reported
(see Note 4,389 4,484 (2) 8,873 9,248 (4)
below)
- underlying excluding (5)
transit^2 (4)
EBITDA
- adjusted^1 flat 2,960
1,497 1,495 2,931 1
- reported
(see Note 1,362 1,428 (5) 2,823 2,798 1
below)
Operating
profit
- adjusted^1 1,515
775 742 4 1,439 5
- reported 1,378
640 675 (5) 1,306 6
Profit
before tax
- adjusted^1 1,186
608 570 7 1,103 8
- reported 1,186
602 552 9 1,069 11
Earnings per
share
- adjusted^1
6.0p 5.6p 7 11.7p 10.8p 8
- reported
7.2p 6.4p 13 13.0p 11.3p 15
Interim
dividend 3.0p 2.6p 15
Capital 596 (9) 1,218 1,234
expenditure 652 (1)
Free cash
flow
- 316 (44) 192 764
normalised^3 563 (75)
- adjusted^1 478 (29) 516 979
671 (47)
Net debt 9,037 8,317
9
Note: Reported revenue and EBITDA include a specific item charge of £85m and
£58m, respectively, in both the second quarter and half year to 30 September
2012 relating to the retrospective regulatory impact of the Court of Appeal
decision on ladder pricing. In the prior year reported revenue included a
specific item charge of £410m relating to a retrospective regulatory ruling in
Germany, which had no impact on profits or cash. See Group results - Specific
items for more details.
Line of business results^1
Revenue EBITDA Operating
cash flow
Second quarter 2012 2011 Change 2012 2011 Change 2012 2011 Change
to
30 September £m £m % £m £m % £m £m %
BT Global 1,757 2,014 (13) 130 159 (18) (171) (55) n/m
Services
BT Retail 1,791 1,853 (3) 474 445 7 317 344 (8)
BT Wholesale 861 982 (12) 280 305 (8) 200 222 (10)
Openreach 1,269 1,280 (1) 582 567 3 246 350 (30)
Other and
intra-group (1,204) (1,235) 3 31 19 63 (114) (190) 40
items
Total 4,474 4,894 (9) 1,497 1,495 flat 478 671 (29)
^
^1 Before specific items. Specific items are defined below
^2 Underlying revenue excluding transit is defined below
^3 Before specific items, pension deficit payments and the cash tax benefit of
pension deficit payments
n/m = not meaningful
Notes:
1) Unless otherwise stated, any reference to revenue, operating costs,
earnings before interest, tax, depreciation and amortisation (EBITDA),
operating profit, profit before tax, earnings per share (EPS) and free cash
flow are measured before specific items. The commentary focuses on the trading
results on an adjusted basis being 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
revenue, reported EBITDA, reported operating profit, reported profit before
tax, reported EPS and reported free cash flow are the equivalent unadjusted or
statutory measures.
2) Underlying revenue, underlying costs and underlying EBITDA are 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 are focusing on the trends in underlying revenue excluding transit revenue
as transit traffic is low-margin and is significantly affected by reductions
in mobile termination rates.
3) Unless otherwise stated, the references 2011, 2012, 2013, 2014 and 2015
are the financial years to 31 March 2011, 2012, 2013, 2014 and 2015,
respectively, except in relation to our fibre roll-out plans and recruitment
plans which are based on calendar years.
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
The third quarter results for 2013 are expected to be announced on Friday
1 February 2013.
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 four lines of business: BT Global Services, BT Retail, BT
Wholesale and Openreach.
In the year ended 31 March 2012, BT Group's revenue was £18,897m with profit
before taxation of £2,445m.
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/0391Q_1-2012-10-31.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MBBBTMBBJTBT -0- Nov/01/2012 07:00 GMT
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement
Rate this Page