Financial press releases, slides, KPIs and webcasts

  • 1 December 2021

    The BT Group Manifesto is taking us towards a bright sustainable future through technology.  

    In the Manifesto you will find our own ambitious goals for change: our net zero carbon and circular economy pathways; our targets to help build our customers’ digital skills; our ambition to energise a more diverse digital talent movement. 

    Launch event replay

  • 18 November 2021

    Webcast

    Watch the webcast replay

    Slides

  • 4 November 2021

    Philip Jansen, Chief Executive, commenting on the results, said

    "These results demonstrate an acceleration of pace in the transformation of BT. We are creating a better BT for our customers, the country and our shareholders. We’re going further and faster on the UK’s next generation connectivity; we’re modernising BT and bringing down costs; and we’re reinstating the dividend today, as planned.

    "After a record six months, Openreach has now rolled out full fibre broadband to almost 6m premises and continues to lower its build cost. Its three largest customers are signed up to the new pricing offer as we see rapid adoption of what will be the UK’s first nationwide full fibre network spanning 25m premises by 2026. Meanwhile, our 5G network now covers over 40% of the UK's population and we have over 5.2m 5G ready customers. Together, our networks provide our customers with an unrivalled level of connectivity.

    "While we are serving our customers better than ever, BT is also changing rapidly internally. We have hit our £1bn cost savings target 18 months early, which allows us to bring forward our FY25 target for £2bn of savings to FY24. This is all part of creating a leaner BT with simplified processes and improved customer experiences.

    "BT is on track and with results in-line with our expectations, we are today confirming our financial outlook for FY22 and FY23. Looking further out, as we pass the peak of our fibre build and move towards an all-fibre, all-IP network, we expect a reduction in capex of at least £1bn and lower operating costs of £500m. From these two factors alone, by the end of the decade we expect an expansion of at least £1.5bn in normalised free cash flow compared to FY22, and that's before any benefits from increased revenue and further transformation efficiencies. Our progressive dividend policy will be underpinned by these increased cash flows as we move to sustainable growth going forward."

    Key strategic developments - accelerating the pace of transformation

    • Adam Crozier joined the Board on 1 November, and will become Chairman with effect from 1 December
    • Ten communication providers including Sky and TalkTalk signed up to Equinox, Openreach's national long-term FTTP pricing offer
    • Launched Eagle-i, our flagship security platform that will predict and prevent cyber-attacks for enterprises
    • Delivered £1bn of gross annualised savings 18 months early at a cost of £571m
    • Brought forward FY25 target of £2bn gross annualised savings to FY24 with further savings in FY25, within the expected cost of £1.3bn; Group peak capex from FY23 now expected to be £4.8bn, down from £5bn previously
    • FTTP joint venture: with FTTP build costs coming down and take-up ahead of expectations, decided to retain 100% of the project for shareholders and to remain fully focused on driving build and take-up
    • Brought forward net zero targets to 2030 for operational emissions and 2040 for supply chain and customer emissions

    Strong operational performance

    • Record Openreach FTTP build in Q2 and footprint now at almost 6m; expected average build costs lowered to £250-£350 per premises passed1
    • Openreach delivered strongest ever H1 for repairs on time at 87.1%, with highest proportion of customers back in service within SLA
    • Consumer and Enterprise have now connected over 1m homes and businesses to FTTP
    • Growth in fixed and broadband ARPC from Q1 into Q2 due to our convergence strategy and CPI+ price rise
    • 5G ready customer base over 5.2m
    • Consumer churn remaining near record lows resulting from strong customer focus

    Interim dividend of 2.31p per share declared; FY22 and FY23 financial outlook confirmed

    • Revenue £10,305m, down 3%; driven by revenue decline in Enterprise and Global, flat in Consumer, partially offset by growth in Openreach; adjusted2 revenue down 3%
    • Adjusted2 EBITDA £3,748m, up 1%, with revenue decline more than offset by lower costs from our transformation programmes and tight cost management, and lower indirect commissions
    • Reported profit before tax £1,009m, down 5%, primarily due to higher finance expenses partly offset by increased EBITDA
    • Net cash inflow from operating activities £2,394m; normalised free cash flow2 £360m, down 15%, primarily due to higher cash capital expenditure and adverse working capital movements, offset by lower tax payments
    • Capital expenditure £2,563m, up 30%, primarily due to investment in spectrum
    • Expect by the end of the decade at least £1.5bn expansion in normalised free cash flow compared to FY22, solely from lower capex and operating costs as we move towards an all-fibre, all-IP network, before any benefits of increased revenue and further transformation efficiencies, net of tax
    • Now expect around £5bn of carried forward tax losses from FY23 as a greater proportion of capex qualify for Government's cash tax super-deduction
    • Interim dividend of 2.31p per share declared

    1 Excludes new builds and net of subsidies.
    2 See Glossary on page 3. 

    Webcast

    Watch the H1 FY22 results webcast replay

    KPIs

  • 29 July 2021

    Key strategic developments

    • Openreach announced an offer for communications providers giving long-term price certainty on FTTP to drive widespread adoption of ultrafast, ultra-reliable full fibre broadband
    • Announced long-term mobile network plans including: a 5G network that covers over 90% of the UK’s landmass by 2028; 4,500 square miles of new rural 4G coverage by 2025; and retiring legacy 3G services by 2023
    • Announced a strengthened strategic partnership with Microsoft to accelerate innovation across enterprise voice, cyber security and industry-focussed services
    • Reached agreement with the CWU1 that recognises the need for change, ensures our colleagues continue to be treated fairly and with respect as we remain on track to modernise BT
    • Announced the launch of our new SoHo (Single/Small office, Home office) unit in Enterprise
    • Completed the sale of business units in Italy serving customers in the public administration and SME sectors
    • Invested in Safe Security, a leader in cyber risk quantification, reflecting our increased focus on security
    • Launched our Hope United campaign using the power of football to tackle online hate, as we continue to lead on the responsible use of technology

    Strong operational performance with continued focus on our network growth:

    • Openreach FTTP network now covers 5m premises; increased our rural FTTP target to 6.2m premises as part of our programme to reach 25m premises by the end of 2026
    • Openreach announced it will stop selling legacy products to a total of 3m premises across 297 exchanges from April 2022
    • Launched Home Essentials, an industry-leading social tariff available to 4.6m low income households
    • Strong growth in FTTP connections and 5G-ready customer base in Consumer
    • Revamped our converged Halo for business broadband bundles to provide 900Mbps full fibre and Unbreakable Wi-Fi
    • Half of total Global orders won in the quarter were for products in our growth portfolio

    Financials on track to deliver outlook and a path to growth:

    • Revenue £5,071m, down 3%; revenue has grown in Consumer and Openreach, and remained flat in the SME sector, more than offset by declines in the Corporate and Public Sector segment in Enterprise and in Global
    • Adjusted2 EBITDA £1,866m, up 3%; all units have delivered EBITDA growth, with the exception of Global
    • Reported profit before tax £536m, down 4% despite higher adjusted2 EBITDA, primarily due to the prior year gain on disposal of our domestic Spanish operations
    • Reported profit after tax £2m, down £446m, due to a one-off tax charge in the quarter to reflect the remeasurement of deferred tax balances following the enactment of the new UK corporation tax rate of 25% from April 2023
    • Normalised free cash flow2 £(43)m, up 12%, due to improved EBITDA and lower cash tax payments, offset by higher cash capital expenditure
    • Capital expenditure up 63% to £1,507m, primarily due to investment in spectrum; capital expenditure excluding spectrum payments up 9% to £1,011m, primarily due to FTTP provisioning activities, mobile network spend and non-network infrastructure due to the Better Workplace programme
    • No change to FY22 or FY23 outlook

    Philip Jansen, Chief Executive, commenting on the results, said

    "Our operational performance remained strong and our EBITDA grew during the first three months of the year, reflecting improved trading across most of our business and the positive benefits of our plans to modernise BT. Our results were overall in line with our expectations during the quarter, with good performance in the UK offsetting challenging conditions in Global's markets.

    We’re powering ahead with our network build programmes: Openreach has now built full fibre broadband to more than 5m premises with growing customer demand; EE has set out plans for 5G on demand anywhere in the UK by 2028. We’ve also reached a partnership agreement with our largest trade union, the CWU1 , allowing us to keep our modernisation plans on track.

    We continue to invest in new strategic growth areas and have also today announced a strengthened strategic partnership with Microsoft that will see us accelerate co-innovation across all areas of our business, including enterprise voice and cyber security, supporting our growth strategy.

    With trading conditions expected to see some improvement through the year, we have confirmed our outlook and remain confident that BT is on a path to growth."

    1 Communications Workers Union.
    See Glossary on page 3.
    Net debt was £17,802m at 31 March 2021

    Webcast

    Q1 2021/22 results - webcast replay

    KPIs

    Presentation slides

  • 23 June 2021

  • 10 June 2021