News Release
DC13-192
13 June 2013
BT SIMPLIFIES FINANCIAL AND OPERATIONAL DISCLOSURE
In order to simplify the disclosure of its financial and operational performance, BT Group has today
announced changes to the future measurement and presentation of key performance indicators (KPIs)
and line of business financial information. Below we explain those changes and provide restated
information for the years ended 31 March 2013 and 31 March 2012 prepared on a consistent basis.
We are making a number of changes that simplify our internal trading and more closely align our line of
business financial results and our regulatory accounts. For example, BT Wholesale’s results now reflect
only revenue generated externally. We are also adjusting the disclosure of our lines of business to
reflect customer account moves and to better reflect their commercial activity. In order to present
historical information on a consistent basis, we have revised comparative information for the years
ended 31 March 2013 and 31 March 2012 for a number of items that impact the financial results of
individual lines of business, but have no impact on the total group results.
To simplify our reporting, we will also no longer separately report other operating income. We have represented items previously reported as other operating income as either revenue or a reduction in
operating costs (as appropriate). Other operating income before specific items was £392m in the year
ended 31 March 2013 (2011/12: £387m). This change increases group revenue by £86m for the year
ended 31 March 2013 (2011/12: £90m) and reduces operating costs by £306m (2011/12: £297m).
There is no impact on the group’s EBITDA or net profit.
Finally, IAS 19 Employee Benefits (Revised) came into effect from 1 April 2013 and we have restated
comparative figures to reflect the position had it applied in those years. In the year ended 31 March
2013, this has increased operating costs by £38m and has reduced net finance income on pensions
(treated as a specific item) by £148m (2011/12: £295m), resulting in an overall reduction of £38m in
EBITDA (2011/12: £30m) and adjusted profit before tax. Reported profit before tax and reported profit
after tax, which are after the impact of specific items, are reduced by £186m (2011/12: £325m) and
£143m (2011/12: £247m), respectively. There is no impact on the group’s free cash flow.
The financial impact for the years ended 31 March 2013 and 31 March 2012 is outlined below, and the
updated KPI document is available at www.btplc.com/results
Results for the first quarter to 30 June 2013 (which are expected to be announced on Thursday 25 July
2013) will be presented on this revised basis.
Enquiries
Press office:
Ross Cook
Tel: 020 7356 5369
Investor relations:
Damien Maltarp
Tel: 020 7356 4909
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
1
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 2013, BT Group’s revenue was £18,017m with profit before taxation of
£2,501m.
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
2
1
Appendix – impact of restatements on 2012/13
£m
As reported - 2012/13
Q1
Q2
Q3
Q4
BT Global Services
Revenue
1,730
1,757
1,746
1,933
EBITDA
119
130
163
214
Operating profit
(36)
(23)
7
55
Free cash flow
(315)
(171)
88
404
FY
Q1
Adjustments
Q2
Q3
Q4
7,166
626
3
6
1
52
51
52
52
53
52
2
52
51
52
BT Retail
Revenue
EBITDA
Operating profit
Free cash flow
1,776
476
381
247
1,791
474
376
317
1,793
474
375
450
1,868
511
413
494
7,228
1,935
1,545
1,508
18
17
(11)
1
17
21
(7)
17
BT Wholesale
Revenue
EBITDA
Operating profit
Free cash flow
923
300
152
129
861
280
133
200
890
289
140
251
914
299
150
316
3,588
1,168
575
896
(245)
(137)
(53)
(137)
Openreach
Revenue
EBITDA
Operating profit
Free cash flow
1,257
553
309
209
1,269
582
339
246
1,274
579
335
365
1,267
600
359
327
5,067
2,314
1,342
1,147
Other
Revenue
EBITDA
Operating profit
Free cash flow
16
15
(66)
(394)
11
31
(50)
(276)
13
43
(15)
(347)
21
49
4
(240)
(1,218)
(1,215)
(1,206)
4,484
1,463
740
(124)
4,474
1,497
775
316
4,510
1,548
842
807
Intra-group items
Revenue
TOTAL
Revenue
EBITDA
Operating profit
Free cash flow
1
Restated - 2012/13
Q2
Q3
Q4
FY
Q1
1
50
49
50
4
206
204
206
1,731
171
15
(263)
1,757
182
30
(119)
1,748
215
58
140
1,934
264
104
454
7,170
832
207
212
17
26
(3)
21
19
26
4
29
71
90
(17)
68
1,794
493
370
248
1,808
495
369
334
1,810
500
372
471
1,887
537
417
523
7,299
2,025
1,528
1,576
(245)
(137)
(52)
(137)
(245)
(136)
(51)
(136)
(245)
(138)
(53)
(138)
(980)
(548)
(209)
(548)
678
163
99
(8)
616
143
81
63
645
153
89
115
669
161
97
178
2,608
620
366
348
13
80
(34)
80
14
82
(32)
82
12
83
(31)
83
9
83
(31)
83
48
328
(128)
328
1,270
633
275
289
1,283
664
307
328
1,286
662
304
448
1,276
683
328
410
5,115
2,642
1,214
1,475
61
138
(127)
(1,257)
1
(23)
36
4
7
(27)
29
(14)
8
(34)
25
(20)
20
(30)
22
(24)
36
(114)
112
(54)
17
(8)
(30)
(390)
18
4
(21)
(290)
21
9
10
(367)
41
19
26
(264)
97
24
(15)
(1,311)
(1,218)
(4,857)
232
226
223
226
907
(986)
(989)
(983)
(992)
(3,950)
4,785
1,673
981
1,301
18,253
6,181
3,338
2,300
20
(11)
(11)
-
19
(9)
(9)
-
17
(9)
(9)
-
30
(9)
(9)
-
86
(38)
(38)
-
4,504
1,452
729
(124)
4,493
1,488
766
316
4,527
1,539
833
807
4,815
1,664
972
1,301
18,339
6,143
3,300
2,300
Before specific items. Free cash flow is before purchases of telecommunications licences, pension deficit payments and the cash tax benefit of pension deficit payments
3
FY
1
Appendix – impact of restatements on 2011/12
£m
As reported - 2011/12
Q1
Q2
Q3
Q4
BT Global Services
Revenue
1,905
2,014
1,894
1,996
EBITDA
138
159
144
186
Operating profit
(37)
(31)
(25)
8
Free cash flow
(60)
(55)
134
164
FY
Q1
Adjustments
Q2
Q3
Q4
7,809
627
(85)
183
1
51
53
51
1
51
55
51
1
52
54
52
BT Retail
Revenue
EBITDA
Operating profit
Free cash flow
1,830
446
344
294
1,853
445
343
344
1,849
453
352
284
1,861
486
381
440
7,393
1,830
1,420
1,362
22
25
3
16
19
27
5
26
BT Wholesale
Revenue
EBITDA
Operating profit
Free cash flow
1,004
307
155
119
982
305
156
222
979
303
154
145
958
293
139
314
3,923
1,208
604
800
(245)
(135)
(49)
(135)
Openreach
Revenue
EBITDA
Operating profit
Free cash flow
1,255
538
306
177
1,280
567
335
350
1,300
591
355
304
1,301
603
364
364
5,136
2,299
1,360
1,195
Other
Revenue
EBITDA
Operating profit
Free cash flow
10
7
(71)
(329)
10
19
(61)
(298)
13
33
(46)
(233)
17
41
(29)
(373)
(1,240)
(1,245)
(1,261)
4,764
1,436
697
201
4,894
1,495
742
563
4,774
1,524
790
634
Intra-group items
Revenue
TOTAL
Revenue
EBITDA
Operating profit
Free cash flow
1
Restated - 2011/12
Q2
Q3
Q4
FY
Q1
54
57
54
3
208
219
208
1,906
189
16
(9)
2,015
210
24
(4)
1,895
196
29
186
1,996
240
65
218
7,812
835
134
391
19
30
7
21
19
25
(2)
28
79
107
13
91
1,852
471
347
310
1,872
472
348
370
1,868
483
359
305
1,880
511
379
468
7,472
1,937
1,433
1,453
(245)
(134)
(47)
(134)
(245)
(135)
(49)
(135)
(245)
(137)
(51)
(137)
(980)
(541)
(196)
(541)
759
172
106
(16)
737
171
109
88
734
168
105
10
713
156
88
177
2,943
667
408
259
14
79
(40)
79
14
81
(39)
81
13
81
(37)
81
10
78
(42)
78
51
319
(158)
319
1,269
617
266
256
1,294
648
296
431
1,313
672
318
385
1,311
681
322
442
5,187
2,618
1,202
1,514
50
100
(207)
(1,233)
2
(28)
25
(11)
2
(32)
19
(24)
4
(36)
17
(19)
2
(27)
31
(23)
10
(123)
92
(77)
12
(21)
(46)
(340)
12
(13)
(42)
(322)
17
(3)
(29)
(252)
19
14
2
(396)
60
(23)
(115)
(1,310)
(1,258)
(5,004)
230
232
230
235
927
(1,010)
(1,013)
(1,031)
(1,023)
(4,077)
4,875
1,609
863
909
19,307
6,064
3,092
2,307
24
(8)
(8)
-
23
(7)
(7)
-
22
(8)
(8)
-
21
(7)
(7)
-
90
(30)
(30)
-
4,788
1,428
689
201
4,917
1,488
735
563
4,796
1,516
782
634
4,896
1,602
856
909
19,397
6,034
3,062
2,307
Before specific items. Free cash flow is before purchases of telecommunications licences, pension deficit payments and the cash tax benefit of pension deficit payments
4
FY