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Company BT Group PLC
TIDM BT.A
Headline

3rd Quarter Results

Released 07:00 01-Feb-2013
Number 8705W07

RNS Number : 8705W
BT Group PLC
01 February 2013
 



 

1 February 2013

 

BT GROUP PLC

 

RESULTS FOR THE THIRD QUARTER AND NINE MONTHS TO 31 DECEMBER 2012

 

 

BT Group plc (BT.L) today announced its results for the third quarter and nine months to 31 December 2012.

 

 

Ian Livingston, Chief Executive, commenting on the results, said:

 

"Our fibre plans are helping to make the UK a broadband leader in Europe. More than 13 million premises can access our fibre broadband and we are passing around 100,000 additional premises every week. Take-up is growing strongly with around 1.25 million homes and businesses now enjoying the benefits of faster speeds. This gives us an excellent platform for our push into TV and Sport later this year. Our pre-season training is going well. We have secured attractive new content and world class production facilities at the Olympic Park and are building a strong team.

 

"Our engineers have worked tirelessly following some of the wettest weather on record. Not only did they complete a record number of field visits in the quarter, they also connected a further 281,000 homes and businesses to broadband and helped us grow the number of landlines. BT Global Services has also done well securing £1.9bn of new orders, up 17%.

 

"We have made progress in a number of areas and delivered solid financial results. These are in line with our expectations for the year, which remain unchanged."

 

Third quarter and nine months results:



Third quarter to

31 December 2012

Nine months to

31 December 2012



£m

Change

£m

Change

Revenue1


4,510

(6)%

13,468

(7)%

Underlying revenue excluding transit


(3)%


(4)%

EBITDA1


1,548

2%

4,508

1%

Profit before tax1

 

675

7%

1,861

8%

Earnings per share

- adjusted1

6.6p

8%

18.4p

9%


- reported

6.2p

(2)%

19.1p

8%

Normalised2 free cash flow


807

£173m

999

£(399)m

Net debt




8,140

£404m

 

 

 

 

 

 

1 Before specific items

2 Before specific items, pension deficit payments and the cash tax benefit of pension deficit payments


 

RESULTS FOR THE THIRD QUARTER AND NINE MONTHS TO 31 DECEMBER 2012

 

Group results


Third quarter to 31 December

Nine months to 31 December


2012

2011

Change

2012

2011

Change


£m

£m

%

£m

£m

%

Revenue







- adjusted1

4,510

4,774

(6)

13,468

14,432

(7)

- reported (see Note below)

4,359

4,774

(9)

13,232

14,022

(6)

- underlying excluding transit2


(3)



(4)

EBITDA







- adjusted1

1,548

1,524

2

4,508

4,455

1

- reported (see Note below)

1,484

1,498

(1)

4,307

4,296

0

Operating profit







- adjusted1

842

790

7

2,357

2,229

6

- reported

778

764

2

2,156

2,070

4

Profit before tax







- adjusted1

675

628

7

1,861

1,731

8

- reported

628

652

(4)

1,814

1,721

5

Earnings per share







- adjusted1

6.6p

6.1p

8

18.4p

16.9p

9

- reported

6.2p

6.3p

(2)

19.1p

17.7p

8

Capital expenditure

572

665

(14)

1,790

1,899

(6)

Free cash flow







- normalised3

807

634

27

999

1,398

(29)

- adjusted1

964

634

52

1,480

1,613

(8)

Net debt




8,140

7,736

5

 

Note: Reported revenue and EBITDA include a specific item charge of £151m and £36m, respectively, in the third quarter and nine months to 31 December 2012 relating to Ofcom's determinations on historic Ethernet pricing. See Group results - Specific items for more details.

 

Line of business results1


Revenue

EBITDA

Operating cash flow

Third quarter to

2012

2011

Change

2012

2011

Change

2012

2011

Change

31 December

£m

£m

%

£m

£m

%

£m

£m

%

BT Global Services

1,746

1,894

(8)

163

144

13

88

134

(34)

BT Retail

1,793

1,849

(3)

474

453

5

450

284

58

BT Wholesale

890

979

(9)

289

303

(5)

251

145

73

Openreach

1,274

1,300

(2)

579

591

(2)

365

304

20

Other and intra-group items

(1,193)

(1,248)

4

43

33

30

(190)

(233)

18

Total

4,510

4,774

(6)

1,548

1,524

2

964

634

        52

 

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

 



 

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 2013 and 2014 are the financial years to 31 March 2013 and 2014, respectively.

 

Enquiries

 

Press office:

Ross Cook                                                                                Tel: 020 7356 5369

 

Investor relations:

Damien Maltarp                                                                         Tel: 020 7356 4909

 

 

A conference call for analysts and investors will be held at 9.00am today and a simultaneous webcast will be available at www.bt.com/results

 

The fourth quarter and full year results for 2013 are expected to be announced on Friday 10 May 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/8705W_-2013-1-31.pdf

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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3rd Quarter Results - RNS