Third quarter to
31 December 2013
|
Nine months to
31 December 2013
|
||||
£m
|
Change1
|
£m
|
Change1
|
||
Revenue2
|
4,599
|
2%
|
13,539
|
0%
|
|
Underlying revenue excluding transit
|
2.4%
|
0.3%
|
|||
EBITDA2
|
1,537
|
0%
|
4,411
|
(2)%
|
|
Profit before tax
|
- adjusted2
|
722
|
8%
|
1,926
|
5%
|
- reported
|
617
|
6%
|
1,565
|
(7)%
|
|
Earnings per share
|
- adjusted2
|
7.3p
|
12%
|
19.1p
|
6%
|
- reported
|
6.3p
|
11%
|
18.5p
|
4%
|
|
Normalised free cash flow3
|
554
|
£(253)m
|
1,104
|
£105m
|
|
Net debt
|
7,640
|
£(500)m
|
·
|
Underlying revenue excluding transit up 2.4% compared with a decline of 3.2% in the
|
|
prior year
|
·
|
EBITDA2 flat at £1,537m, with cost transformation offsetting the investment in BT Sport
|
·
|
Earnings per share2 up 12%
|
·
|
2013/14 EBITDA2 now expected to be at the upper end of the £6.0bn-£6.1bn range
|
|
Third quarter to 31 December
|
Nine months to 31 December
|
|||||||
2013
|
20121
|
Change
|
2013
|
20121
|
Change
|
|||
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|||
Revenue
|
||||||||
- adjusted2
|
4,599
|
4,527
|
2
|
13,539
|
13,524
|
0
|
||
- reported (See Note below)
|
4,599
|
4,376
|
5
|
13,539
|
13,288
|
2
|
||
- underlying excluding transit
|
2.4
|
0.3
|
||||||
EBITDA
|
||||||||
- adjusted2
|
1,537
|
1,539
|
0
|
4,411
|
4,479
|
(2)
|
||
- reported (See Note below)
|
1,491
|
1,475
|
1
|
4,229
|
4,278
|
(1)
|
||
Operating profit
|
||||||||
- adjusted2
|
867
|
833
|
4
|
2,367
|
2,328
|
2
|
||
- reported
|
821
|
769
|
7
|
2,185
|
2,127
|
3
|
||
Profit before tax
|
||||||||
- adjusted2
|
722
|
666
|
8
|
1,926
|
1,832
|
5
|
||
- reported
|
617
|
583
|
6
|
1,565
|
1,676
|
(7)
|
||
Earnings per share
|
||||||||
- adjusted2
|
7.3p
|
6.5p
|
12
|
19.1p
|
18.1p
|
6
|
||
- reported
|
6.3p
|
5.7p
|
11
|
18.5p
|
17.8p
|
4
|
||
Capital expenditure
|
581
|
572
|
2
|
1,772
|
1,790
|
(1)
|
||
Normalised free cash flow3
|
554
|
807
|
(31)
|
1,104
|
999
|
11
|
||
Net debt
|
7,640
|
8,140
|
(6)
|
|||||
|
|
|
|
Revenue
|
EBITDA
|
Free cash flow3
|
|||||||
Third quarter to
|
2013
|
20121
|
Change
|
2013
|
20121
|
Change
|
2013
|
20121
|
Change
|
31 December
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
BT Global Services
|
1,794
|
1,748
|
3
|
263
|
215
|
22
|
78
|
140
|
(44)
|
BT Retail
|
1,875
|
1,810
|
4
|
460
|
500
|
(8)
|
352
|
471
|
(25)
|
BT Wholesale
|
589
|
645
|
(9)
|
146
|
153
|
(5)
|
30
|
115
|
(74)
|
Openreach
|
1,274
|
1,286
|
(1)
|
660
|
662
|
0
|
452
|
448
|
1
|
Other and intra-group items
|
(933)
|
(962)
|
3
|
8
|
9
|
(11)
|
(358)
|
(367)
|
2
|
Total
|
4,599
|
4,527
|
2
|
1,537
|
1,539
|
0
|
554
|
807
|
(31)
|
a)
|
The commentary focuses on the trading results on an adjusted basis 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 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 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.
|
b)
|
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 focus 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.
|
|
1 Restated, see Note 1 to the condensed consolidated financial statements
|