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Chairman’s
statement
In my remarks at the Extraordinary
Things have not stood still while
General Meeting held in April,
merger talks were in progress, and
I described the merger as a “rite of
your company has had a most
passage” for BT – on the journey
satisfactory year. Turnover grew by
1996/97 was the most
from nationalised monopoly to
3.4 per cent, helped by innovative
significant year for BT since its
leading global competitor. In some
and successful marketing and by
privatisation some 12 years
of the press coverage this was
growth in the demand for advanced
ago. It was the year in which
reported as a “right of passage”
services, such as FeatureNet and
BT and MCI made history by
and, as so often happens, such a
high-speed ISDN connections.
announcing our intention to
slip revealed a new truth.
merge and form Concert, a
leading player in the global
telecommunications industry
of the future.
A great deal has to happen between
the announcement of a proposed
merger and eventual closure. But
we have already safely passed a
number of key milestones. The
merger has received overwhelming
shareholder approval on both sides
of the Atlantic and we have made
good progress towards the
necessary regulatory clearances.
offers excellent value for money
passage” for your company, in the
was further enhanced by price
sense that it is something that we
reductions on a range of call types
have earned.
and other services worth a total of
P a g e
over £800 million in the year.
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If BT had not become so customer-
Earnings per share increased to
competition, innovative, and
32.8p and I am pleased to report a
committed to quality, we would
final dividend for the year of 11.95p
simply not have been in a position
per share. This will be paid at the
to make this merger work. The fact
same time as the 35p per share
that we are is a splendid testimony
special dividend, which was
to the BT people who have
announced in connection with the
reshaped this company over the
merger and which brings the total
last decade, and to the enlightened
dividend for the year to 54.85p.
and rigorous regulation pursued by
changes that have taken place
the outgoing UK Government.
great companies of the twentyfirst century.
We have yet to see how the policies
of the incoming Government will
develop. But I am encouraged by
its clear enthusiasm for the benefits
that information technology
can bring.
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Date: 21/05/97
driven many of the dramatic
chance to build one of the first
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focused, so responsive to
policies of privatisation, liberalisation
decade. We are now seizing the
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BT and MCI, between us, have
in our industry over the last
Our reputation as a company that
Concert is indeed a “right of
Excluding the special dividend,
this represents an increase of
6.1 per cent on last year.
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C H A I R M A N ’ S S TAT E M E N T
Your company has continued to
make substantial investments in its
Financial highlights
FOR THE YEAR ENDED 31 MARCH 1997
UK network, over the year, to match
1997
1996
£14,935m
£14,446m
Profit before taxation
£3,203m
£3,019m
Profit after taxation
£2,101m
£1,992m
32.8p
31.6p
the ever-rising level and scope of
Turnover
service our customers expect. The
growth in demand for advanced
services is especially marked.
For personal customers, the
Earnings per share
Dividends per share – ordinary
benefits are clear. Particularly in
such areas as education,
– special
Capital expenditure
19.85p
18.70p
35.00p
–
£2,719m
£2,771m
healthcare and public information,
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your company is developing
products and services that really do
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add value to our customers’ lives.
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This has been a record year, too, for
The recent agreements that we
There is no apparent slowing in the
awards to BT on its unique
have put in place with Spain’s
rate at which new markets and new
Date: 20/05/97
community programme.
Telefonica and with Portugal
opportunities – both geographical
P r o o f N o :
For business customers, the
Telecom illustrate the opportunities
and technical – are emerging.
Internet and corporate intranet
that abound in global
The demand for communications
markets are growing at an
telecommunications markets. We
services around the world is
exhilarating rate and BT and MCI
will be especially well positioned to
intense and it is growing.
in Concert will carry around half of
seize opportunities in Latin America
the world’s Internet traffic.
and among the Spanish-speaking
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communities of the USA.
We are focusing on developing
This is the world of opportunity
in which Concert will find its
place. Our task is to convert that
integrated solutions that meet the
The Asia-Pacific region is also of
opportunity into long-term
whole range of a company’s needs,
great importance to us. We are
shareholder value.
helping it to gain competitive
already a leading supplier of
advantage in its own marketplace.
value-added data networks in
Electronic commerce, for example,
Japan. We have significant
has the capacity to revolutionise the
initatives underway in each of the
way businesses bring their
sub-regions.
products to market and interact
One particularly encouraging
with their customers.
development was the
On the international front, as we
announcement, in March, that BT
approach the liberalisation of
and Japan’s NTT had joined forces
telecommunications markets
to bid, with local partners, for a
throughout the European Union
second telecoms licence in
from 1 January 1998, we are
Singapore.
Sir Iain Vallance
Chairman
20 MAY 1997
building a presence across the
continent. BT is now particularly
well positioned in all the major
European countries.
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