|
Second quarter
to 30 September 2011
|
Half year
to 30 September 2011
|
|||
|
£m
|
Change
|
£m
|
Change
|
|
|
Revenue1
|
4,894
|
(2)%
|
9,658
|
(3)%
|
|
Underlying revenue excluding transit
|
0.4%
|
(1)%
|
||
|
EBITDA1
|
1,495
|
3%
|
2,931
|
3%
|
|
Profit before tax - adjusted1
|
570
|
15%
|
1,103
|
17%
|
|
- reported
|
552
|
36%
|
1,069
|
37%
|
|
Earnings per share - adjusted1
|
5.6p
|
10%
|
10.8p
|
14%
|
|
- reported
|
6.4p
|
25%
|
11.3p
|
28%
|
|
Interim dividend
|
2.6p
|
8%
|
||
|
Free cash flow1
|
671
|
£95m
|
979
|
£(56)m
|
|
Net debt
|
8,317
|
£(387)m
|
||
|
|
|
Group results
|
|
Second quarter to 30 September
|
Half year to 30 September
|
|||||
|
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
|
Revenue
|
||||||
|
- adjusted1
|
4,894
|
4,977
|
(2)
|
9,658
|
9,983
|
(3)
|
|
- reported (see Note below)
|
4,484
|
4,977
|
(10)
|
9,248
|
9,983
|
(7)
|
|
- underlying excluding transit2
|
0.4
|
(1)
|
||||
|
EBITDA
|
||||||
|
- adjusted1
|
1,495
|
1,452
|
3
|
2,931
|
2,851
|
3
|
|
- reported
|
1,428
|
1,381
|
3
|
2,798
|
2,729
|
3
|
|
Operating profit
|
||||||
|
- adjusted1
|
742
|
715
|
4
|
1,439
|
1,385
|
4
|
|
- reported
|
675
|
644
|
5
|
1,306
|
1,263
|
3
|
|
Profit before tax
|
||||||
|
- adjusted1
|
570
|
496
|
15
|
1,103
|
942
|
17
|
|
- reported
|
552
|
406
|
36
|
1,069
|
781
|
37
|
|
Earnings per share
|
||||||
|
- adjusted1
|
5.6p
|
5.1p
|
10
|
10.8p
|
9.5p
|
14
|
|
- reported
|
6.4p
|
5.1p
|
25
|
11.3p
|
8.8p
|
28
|
|
Interim dividend
|
2.6p
|
2.4p
|
8
|
|||
|
Capital expenditure
|
652
|
608
|
7
|
1,234
|
1,131
|
9
|
|
Free cash flow
|
||||||
|
- adjusted1
|
671
|
576
|
16
|
979
|
1,035
|
(5)
|
|
- reported
|
629
|
535
|
18
|
876
|
950
|
(8)
|
|
Net debt
|
8,317
|
8,704
|
(4)
|
|||
|
|
|
|
Revenue
|
EBITDA
|
Operating cash flow
|
|||||||
|
Second quarter to
|
2011
|
20103
|
Change
|
2011
|
20103
|
Change
|
2011
|
20103
|
Change
|
|
30 September
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
BT Global Services
|
2,014
|
1,992
|
1
|
159
|
138
|
15
|
(55)
|
(28)
|
(96)
|
|
BT Retail
|
1,853
|
1,919
|
(3)
|
445
|
414
|
7
|
344
|
333
|
3
|
|
BT Wholesale
|
982
|
1,051
|
(7)
|
305
|
326
|
(6)
|
222
|
222
|
-
|
|
Openreach
|
1,280
|
1,235
|
4
|
567
|
532
|
7
|
350
|
255
|
37
|
|
Other and intra-group items
|
(1,235)
|
(1,220)
|
(1)
|
19
|
42
|
(55)
|
(190)
|
(206)
|
8
|
|
Total
|
4,894
|
4,977
|
(2)
|
1,495
|
1,452
|
3
|
671
|
576
|
16
|
|
1
|
Before specific items. Specific items are defined below and analysed in Note 4 to the condensed consolidated financial statements
|
|
2
|
Underlying revenue excluding transit is defined below
|
|
3
|
Restated for the impact of customer account moves. See Note 1 to the condensed consolidated financial statements
|
|
1)
|
Unless otherwise stated, any reference to revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), operating profit, operating costs, profit before tax and earnings per share (EPS) 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 and reported EPS are the equivalent unadjusted or statutory measures.
|
|
2)
|
Underlying revenue is a measure which seeks to reflect the underlying revenue performance of the group that will contribute to long-term profitable growth. As such it excludes any increases or decreases in revenue as a result of acquisitions or disposals, any foreign exchange movements affecting revenue 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 which have no impact on the group's profitability.
|
|
3)
|
The income statement, cash flow statement, statements of comprehensive income and equity and balance sheet are provided on pages 11 to 15. A reconciliation of group operating profit to EBITDA (as defined above) is provided in Note 7. A reconciliation of reported profit before tax to adjusted profit before tax is provided in Note 8. A reconciliation of reported EPS (as defined above) to adjusted EPS is provided in Note 9. Reconciliations of free cash flow and net debt are provided in Notes 5 and 6, respectively.
|
|
4)
|
Unless otherwise stated, the references 2011 and 2012 are the financial years to 31 March 2011 and 2012, respectively, except in relation to our fibre roll-out plans which are based on calendar years.
|