Financial press releases, slides, KPIs and webcasts

  • 12 May 2022

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

    “BT Group has again delivered a strong operational performance thanks to the efforts of our colleagues across the business. Openreach continues to build like fury, having now passed 7.2m premises with 1.8m connections; a strong and growing early take-up rate of 25%. Meanwhile, our 5G network now covers more than 50% of the UK population. We have the best networks in the UK and we’re continuing to invest at an unprecedented pace to provide unrivalled connectivity for our customers. At the same time we’re seeing record customer satisfaction scores across the business.

    “We have finalised the sports joint venture with Warner Bros. Discovery to improve our content offering to customers, aligning our business with a new global content powerhouse. Separately, we have strengthened our strategic partnership and key customer relationship with Sky, having now extended our reciprocal channel supply deal into the next decade and agreed a MoU to extend our co-provisioning agreement.

    “Our modernisation continues at pace and we are extending our cost savings target of £2bn by end FY24 to £2.5bn by end FY25. We delivered EBITDA growth of 2% this year as strong savings from our modernisation programme more than offset weaker revenues from our enterprise businesses due to well-known market challenges.

    “While the economic outlook remains challenging, we’re continuing to invest for the future and I am confident that BT Group is on the right track. As a result, we are today reconfirming our FY23 outlook for revenue growth, EBITDA of at least £7.9bn and also the reinstatement of our full year FY22 dividend, as promised, at 7.7 pence per share.”

    Strong progress in strategic priorities:

    • Positive leading indicators: Highest ever BT Group NPS results; low Ofcom complaints; churn near record lows
    • BT Group and Warner Bros. Discovery agreed to form a new premium sports joint venture bringing together BT Sport and Eurosport UK
    • Agreed with Sky a new longer-term reciprocal channel supply deal beyond 2030
    • Openreach signed a MoU on a framework with Sky on FTTP co-provisioning; Sky engineers to complete the majority of their FTTP in-premises provisioning activities on Openreach’s FTTP network
    • FTTP footprint at 7.2m with annualised Q4 build rate of over 3m premises; take up of 1.8m driven by Equinox
    • 5G network now covers over 50% of the UK population; our 5G ready customer base is over 7.2m and EE is once again named as having the best 5G and 4G network by RootMetrics
    • Achieved gross annualised cost savings now totalling £1.5bn; increased target to £2.5bn by end FY25, within the previously communicated cost to achieve of £1.3bn

    Adjusted EBITDA growth and return of full year dividend:

    • Revenue £20.9bn, down 2%, reflecting revenue decline in Enterprise and Global offset by growth in Openreach, with Consumer flat for the year and returning to growth in Q4; adjusted1 revenue down 2%
    • Adjusted1 EBITDA £7.6bn, up 2%, with revenue decline more than offset by lower costs from our modernisation programmes, tight cost management, and lower indirect commissions
    • Reported profit before tax £2.0bn, up 9%, due to increased EBITDA offsetting higher finance expense
    • Reported profit after tax £1.3bn, down 13%, due to remeasurement of our deferred tax balance
    • Net cash inflow from operating activities £5.9bn; normalised free cash flow1 £1.4bn, down 5%, due to higher cash capital expenditure, offset by higher EBITDA and lower tax and lease payments
    • Capital expenditure £5.3bn, up 25%. Capital expenditure excluding spectrum £4.8bn, up 14% primarily due to continued higher spend on our fibre infrastructure and mobile networks
    • IAS 19 gross pensions deficit £1.1bn, (31 March 2021: £5.1bn) due to an increase in real discount rate, deficit contributions paid, changes to demographic assumptions and positive asset returns
    • FY22 final dividend declared at 5.39p per share, bringing the full year total, as promised, to 7.70p per share
    • Outlook for FY23: adjusted1 revenue to grow year on year; adjusted1 EBITDA of at least £7.9bn; capital expenditure excluding spectrum of around £4.8bn; normalised free cash flow of £1.3bn to £1.5bn.

    1 See Glossary on page 3 of release. 

    Results for the full year
    to 31 March 2022

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  • 11 March 2022

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  • 3 February 2022

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

    “BT has had a good quarter with encouraging market share performance, and we continued to make significant improvements in customer service, although revenue from our enterprise divisions was softer than we expected.

    We had another record-breaking quarter on our full fibre build and a pleasing 37% increase in FTTP connections following the launch of Openreach’s wholesale pricing offer. Our 5G build is also on track and now covers over 40% of the UK population with independently verified network leadership.

    Today sees two important strategic partnership announcements on how BT moves forward in the fast-evolving content and TV business. The agreement in principle with Sky will provide our customers more choice and more flexibility for the next decade. Separately, we are excited at the prospect of a new joint venture between BT Sport and Eurosport UK as we enter into exclusive discussions with Discovery.”

    Strong operating momentum delivered by record customer experience and FTTP build:
     
    • Reached agreement in principle with Sky for a new longer-term reciprocal channel supply deal to beyond 2030
    • Separately, entered exclusive discussions with Discovery to create a joint venture with BT Sport and Eurosport UK
    • Delivered record FTTP build of 662k at an average rate of over 50k per week in the quarter with footprint now at 6.5m, including 2m rural premises
    • FTTP take up accelerated to 1.5m premises driven by Openreach's Equinox offer
    • 5G ready customer base over 6.4m; 5G now covers more than 40% of the UK population
    • According to RootMetrics, EE again has the UK's best 4G and 5G networks
    • Highest ever NPS result for BT Group
    Continued EBITDA growth with revenue challenges due to delayed Covid-19 recovery and supply chain issues1:
     
    • Revenue £15,676m, down 2%; declines primarily in Global and Enterprise partly offset by growth in Openreach; adjusted2 revenue down 3%
    • Adjusted2 EBITDA £5,708m, up 2%; driven by tight cost management, lower indirect commissions and higher revenue from Ethernet and fibre-enabled products, partly offset by declining revenue in Global and Enterprise
    • Reported profit before tax £1,537m, down 3%, primarily due to higher finance expenses and depreciation and amortisation, partly offset by increased EBITDA
    • Normalised free cash flow2 £878m, up 6%, primarily due to increased EBITDA, lower cash tax payments and improved working capital, offset by higher cash capital expenditure and one-off items in the prior year
    • Capital expenditure up 24% to £3,752m, primarily due to investment in spectrum, FTTP and mobile network
    • Group adjusted2 revenue now expected to be down around 2% for FY22 as a result of Covid-19 and supply chain issues; all other outlook metrics unchanged

    1 All commentary relates to the nine months to 31 December 2021 unless otherwise stated.
    2 See Glossary on page 4.
    3 Net debt was £17,802m at 31 March 2021.

    Results for the nine months to
    31 December 2021

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  • 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

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  • 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. 

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  • 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.
    2 See Glossary on page 3.
    3 Net debt was £17,802m at 31 March 2021

    News release

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  • 23 June 2021

  • 10 June 2021

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