BT Group PLC Results for the Third Quarter and Nine Months to 31 December 2011

LONDON, Feb. 3, 2012 /PRNewswire/ -- BT Group plc (BT.L) today announces its results for the third quarter and nine months to 31 December 2011.

Ian Livingston, Chief Executive, commenting on the results, said:

"We have delivered another quarter of growth in profits and cash flow despite the economic headwinds.

"Our investment to support our customers and improve our services has resulted in new contract wins around the world, with orders so far this year up over 50% in Asia Pacific and Latin America. In the UK, our fibre roll-out has accelerated bringing super-fast broadband within reach of over 7m homes and businesses and we remain the number one broadband retailer with over 6m customers. Our fixed-line base has now grown for the last five quarters and our active consumer line loss is at its lowest for five years.

"We expect to achieve our 2013 EBITDA(1) target of above pounds 6bn a year early and to deliver free cash flow(2) of around pounds 2.4bn this year."

(1) Before specific items

(2) Before specific items and pension deficit payments
Unless otherwise stated, the changes in results are year on year against the third quarter and nine months to 31 December 2010.

NOTE:

For the full text of the announcement, go to:
http://www.btplc.com/News/Articles/Showarticle.cfm?ArticleID=CD3E751B-9EAC-4299-9A81-A3931508F0AC

Notes:

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. Underlying costs is a measure which seeks to reflect the underlying costs of the group as a result of operational efficiency improvements. As such it excludes any decreases or increases in costs as a result of acquisitions or disposals, any foreign exchange movements affecting costs and any specific items.

3)  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.

The fourth quarter and full year results for 2012 are expected to be announced on 10 May 2012.

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 products and services. BT consists principally of four lines of business: BT Global Services, BT Retail, BT Wholesale and Openreach.

In the year to 31 March 2011, BT Group's revenue was pounds 20,076m with profit before taxation of pounds 1,717m.

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

SOURCE BT Group plc