BT Group plc Results For The First Quarter To 30 June 2014

          BT Group plc Results For The First Quarter To 30 June 2014

PR Newswire

IRVING, Texas, July 31, 2014

IRVING, Texas, July 31, 2014 /PRNewswire/ -- BT Group plc (BT.L) today
announced its results for the first quarter to 30 June 2014.

                                         First quarter to 30 June 2014
                                         £m            Change
Revenue^1                                4,354         (2)%
Underlying revenue^2 excluding transit                 0.5%
EBITDA^1                                 1,435         0%
Profit before tax           - adjusted^1 638           7%
                            - reported   546           22%
Earnings per share          - adjusted^1 6.5p          10%
                            - reported   5.6p          27%
Normalised free cash flow^3              122           £182m
Net debt                                 7,079         £(979)m

Gavin Patterson, Chief Executive, commenting on the results, said:

"We have made a good start to the year. We have delivered growth in
underlying revenue excluding transit and in profit before tax, and free cash
flow was strong.

"Our fibre broadband network now covers more than twenty million premises. We
are passing over 70,000 additional premises each week and demand is strong
with more than three million already signed up. We have announced a further
2,500 new jobs in recent months to support our strategic investments in fibre
and customer service.

"I'm excited by the launch of BT One Phone for the business market as well as
our other mobility plans. We'll say more on these later this financial year.
The second season of BT Sport is about to start with a great line-up of
content and it will continue to be free with BT Broadband. We are building on
solid foundations and I am confident we will deliver on our strategy."

Key points for the first quarter:

  oUnderlying revenue excluding transit up 0.5%
  oCost transformation running at a similar pace to last financial year;
    underlying operating costs^4 excluding transit and BT Sport down 3%
  oEBITDA^1 flat and earnings per share^1 up 10%
  oBT Global Services and BT Business both grew EBITDA despite lower revenue
  oOur outlook remains unchanged

^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, purchases of telecommunications licences, 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

                                       First quarter to 30 June
                                       2014    2013    Change
                                       £m      £m      %
- adjusted^1                           4,354   4,449   (2)
- reported                             4,354   4,449   (2)
- underlying revenue excluding transit                 0.5
- adjusted^1                           1,435   1,440   0
- reported                             1,391   1,356   3
Operating profit
- adjusted^1                           783     743     5
- reported                             739     659     12
Profit before tax
- adjusted^1                           638     595     7
- reported                             546     449     22
Earnings per share
- adjusted^1                           6.5p    5.9p    10
- reported                             5.6p    4.4p    27
Capital expenditure^2                  516     596     (13)
Normalised free cash flow^3            122     (60)    n/m
Net debt                               7,079   8,058   £(979)m

Line of business results^1
                   Revenue             EBITDA              Free cash flow^3
First quarter to   2014  2013^4 Change 2014  2013^4 Change 2014  2013^4 Change
30 June
                   £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          (871) (921)  5      (6)   1      n/m    (267) (291)  8
intra-group items
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


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

A conference call for analysts and investors will be held at 9.00am today and
a simultaneous webcast will be available at

The complete press release can be found at

The second quarter and half year results for 2014/15 are expected to be
announced on Thursday 30 October 2014.

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


Contact: Enquiries, Press office: Ross Cook Tel: 020 7356 5369, Investor
relations: Damien Maltarp Tel: 020 7356 4909
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