Key Performance Indicators Q2 2016/17
For the quarter ended 30 September 2016. Published 27 October 2016
Sheet 1
Sheet 2
Income statement & free cash flow
Consumer
Sheet 3
Sheet 4
Sheet 5
Sheet 6
Sheet 7
Sheet 8
EE
Business and Public Sector
Global Services
Wholesale and Ventures
Openreach
Broadband, TV and lines
Sheet 9
Sheet 10
Sheet 11
Mobile
Costs
Glossary
On 29 June 2016, we issued restated 2014/15 and 2015/16
financial information to reflect our new organisational
structure and internal model changes, which came into effect
on 1 April 2016. The results include EE from when we
acquired it on 29 January 2016. Unless noted otherwise, the
comparatives do not include EE prior to 29 January 2016.
For further information please contact:
BT Investor Relations
phone
+44 (0)20 7356 4909
email
[email protected]
web
www.bt.com/ir
While BT believes the information contained in this document to be reliable, BT does not warrant the accuracy, completeness or validity of the information, figures or calculations
that follow and shall not be liable in any way for loss or damage arising out of the use of the information, or any errors or omissions in its content.
2015/16
Q1
1. Group income statement
£m unless otherwise stated
YoY
Change
2016/17
Q1
2015/16
Q2
%
YoY
Change
2016/17
Q2
2015/16
Q3
2015/16
Q4
2015/16
Full Year
1,251
1,277
1,177
1,409
522
1,273
1
(857)
6,053
112
1,208
1,035
1,307
578
1,294
4
(832)
4,594
102
1,195
841
1,243
1,388
543
1,290
4
(848)
5,656
109
4,608
841
4,294
5,103
2,274
5,100
11
(3,322)
18,909
419
1.1%
4.7%
1.3%
2.0%
252
282
387
132
204
630
1
1,888
274
0
341
162
182
677
(23)
1,613
318
173
455
233
213
698
(14)
2,076
1,055
173
1,414
601
755
2,659
(77)
6,580
%
1
Revenue
Consumer
EE
Business and Public Sector
Global Services
Wholesale and Ventures
Openreach
Other
Eliminations
Total
- of which transit
1,076
990
1,196
578
1,249
3
(814)
4,278
109
2
9.2
n/m
18.1
4.5
(10.4)
0.2
0.0
2.6
35.0
1,175
1,243
1,169
1,250
518
1,252
3
(835)
5,775
102
1,129
1,026
1,212
575
1,267
0
(828)
4,381
99
0.4%
2.0%
10.8
n/m
14.7
16.3
(9.2)
0.5
n/m
3.5
38.2
Underlying revenue excl. transit (YoY )
0.0%
EBITDA1
Consumer
EE
Business and Public Sector
Global Services
Wholesale and Ventures
Openreach
Other
Total
258
297
93
185
638
(22)
1,449
(7.4)
n/m
20.2
28.0
7.6
(0.9)
n/m
25.5
239
281
357
119
199
632
(9)
1,818
205
321
113
175
646
(18)
1,442
22.9
n/m
20.6
16.8
16.6
(2.5)
n/m
30.9
Depreciation and amortisation1
(628)
36.1
(855)
(623)
39.5
(869)
(592)
(787)
(2,630)
Operating profit1
821
17.3
963
819
24.4
1,019
1,021
1,289
3,950
Net finance expense1
(132)
16.7
(154)
(112)
30.4
(146)
(95)
(144)
(483)
(7)
(1)
0
2
0
6
15.6
802
706
23.7
873
928
1,145
3,473
(33)
(52)
(85)
(8)
(56)
(64)
(149)
(53)
(202)
(11)
(55)
(66)
(197)
(55)
(252)
(223)
(221)
(444)
Share of post tax profits/losses of associates & joint ventures
1
5
Profit before tax1
694
Specific items
Net interest on pensions
Total specific items
(7)
(55)
(62)
Reported profit before tax
Tax - excluding tax on specific items
Tax on specific items
Tax rate
Net income
EPS1 (p)
Reported EPS (p)
Dividend per share (p)
Average number of shares in issue (m)
632
13.4
717
642
4.5
671
862
893
3,029
(132)
11
19.0%
9.1
(144)
15
18.0%
(129)
12
18.3%
20.9
(156)
51
17.9%
(173)
107
18.6%
(173)
36
15.1%
(607)
166
17.5%
511
15.1
588
525
7.8
566
796
756
2,588
6.7
6.1
8,330
(1.5)
(3.3)
6.6
5.9
9,933
6.9
6.3
4.40
8,339
4.3
(9.5)
10.2
7.2
5.7
4.85
9,932
9.0
9.5
8,356
10.2
8.0
9.60
9,457
33.2
29.9
14.00
8,619
n/m
1,818
(711)
(188)
(147)
(324)
448
44
0
(52)
440
(5)
435
1,442
(595)
(65)
(91)
(122)
569
46
0
(30)
585
0
585
48.4
1,888
(751)
(94)
(159)
10
894
44
0
(62)
876
(8)
868
1,613
(589)
(181)
(142)
203
904
44
0
(18)
930
0
930
2,076
(649)
(112)
(138)
342
1,519
44
0
(132)
1,431
(255)
1,176
6,580
(2,459)
(541)
(459)
(23)
3,098
203
0
(232)
3,069
(880)
2,189
64.6
9,579
5,919
61.7
9,573
5,021
9,845
9,845
Group free cash flow
1
EBITDA
3
Capital expenditure
Interest
Tax (excluding cash tax benefit of pension deficit payments)
Change in working capital & other
Normalised free cash flow4
Cash tax benefit of pension deficit payments
Purchases of telecoms licences
Specific items
Reported free cash flow
Gross pension deficit payment
Free cash flow (post pension deficit payments)
1,449
(626)
(183)
(88)
(446)
106
69
0
(52)
123
(625)
(502)
Net debt
5,819
13.6
2.7
322.6
257.7
26.2
44.6
57.1
49.7
1
before specific items
2
excludes specific items, foreign exchange movements and disposals, and from Q1 2016/17 onwards is calculated as though EE had been part of the group from 1 April 2015
3
before purchases of telecommunications licences
4
before specific items, purchases of telecommunications licences, pension deficit payments and the cash tax benefit of pension deficit payments
n/m = not meaningful
2014/15
2. Consumer
2015/16
2016/17
Q1
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q2
641
641
648
657
2,587
377
387
403
414
1,581
30
29
35
31
125
1,048
1,057
1,086
1,102
4,293
14
15
16
17
62
644
0.5%
405
7.4%
27
-10.0%
1,076
2.7%
15
7.1%
650
1.4%
452
16.8%
27
-6.9%
1,129
6.8%
16
6.7%
678
4.6%
497
23.3%
33
-5.7%
1,208
11.2%
17
6.3%
672
2.3%
495
19.6%
28
-9.7%
1,195
8.4%
17
0.0%
2,644
2.2%
1,849
17.0%
115
-8.0%
4,608
7.3%
65
4.8%
661
2.6%
489
20.7%
25
-7.4%
1,175
9.2%
16
6.7%
697
7.2%
527
16.6%
27
0.0%
1,251
10.8%
16
0.0%
EBITDA (£m)
YoY
241
228
255
320
1,044
258
7.1%
205
-10.1%
274
7.5%
318
-0.6%
1,055
1.1%
239
-7.4%
252
22.9%
Operating profit (£m)
YoY
186
174
205
261
826
208
11.8%
147
-15.5%
224
9.3%
269
3.1%
848
2.7%
187
-10.1%
200
36.1%
39
52
47
69
207
52
33.3%
56
7.7%
46
-2.1%
53
-23.2%
207
0.0%
58
11.5%
53
-5.4%
229
109
278
212
828
215
-6.1%
56
-48.6%
353
27.0%
157
-25.9%
781
-5.7%
298
38.6%
90
60.7%
33.2
33.6
34.2
34.6
34.9
5.1%
35.6
6.0%
36.6
7.0%
37.1
7.2%
37.8
8.3%
38.8
9.0%
Financial
Revenue (£m)
Calls & lines
YoY
Broadband & TV
YoY
Other (incl. eliminations)
YoY
Total
YoY
- of which internal
YoY
Capex (£m)
YoY
Operating free cash flow (£m)
YoY
Operational
Consumer ARPU (£ per month)
YoY
3. EE
2015/16
Q4
FY
2016/17
Q1
Q2
Financial
Revenue (£m)
Postpay mobile
Prepay mobile
Fixed
Equipment
Total
682
68
47
44
841
682
68
47
44
841
Underlying revenue 1 (YoY )
EBITDA (£m)
173
173
Underlying EBITDA 1 adjusted for acquisition of EE (YoY)
Operating profit (£m)
Capex (£m)
Operating free cash flow (£m)
1,018
100
63
62
1,243
1,038
105
69
65
1,277
-2.2%
0.0%
281
282
11%
-1%
(44)
(44)
84
83
96
96
150
149
238
238
187
135
Note: EE's Q4 and FY15/16 results are for the 2 months from acquisition on 29 January 2016
1
excludes specific items, foreign exchange movements and disposals, and from Q1 2016/17 onwards is calculated as though EE had been part of the group from 1 April 2015
2014/15
4. Business and Public Sector
2015/16
2016/17
Q1
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q2
579
570
569
625
2,343
125
127
122
122
496
281
279
287
275
1,122
81
80
85
83
329
(13)
(7)
(16)
(7)
(43)
1,053
1,049
1,047
1,098
4,247
21
25
26
27
99
10
10
10
10
40
534
-7.8%
118
-5.6%
277
-1.4%
80
-1.2%
(19)
46.2%
990
-6.0%
24
14.3%
10
0.0%
540
-5.3%
121
-4.7%
293
5.0%
97
21.3%
(25)
257.1%
1,026
-2.2%
25
0.0%
10
0.0%
557
-2.1%
126
3.3%
290
1.0%
82
-3.5%
(20)
25.0%
1,035
-1.1%
26
0.0%
9
-10.0%
604
-3.4%
185
51.6%
381
38.5%
93
12.0%
(20)
185.7%
1,243
13.2%
24
-11.1%
9
-10.0%
2,235
-4.6%
550
10.9%
1,241
10.6%
352
7.0%
(84)
95.3%
4,294
1.1%
99
0.0%
38
-5.0%
487
-8.8%
191
61.9%
415
49.8%
86
7.5%
(10)
-47.4%
1,169
18.1%
37
54.2%
9
-10.0%
484
-10.4%
188
55.4%
421
43.7%
97
0.0%
(13)
-48.0%
1,177
14.7%
24
-4.0%
8
-20.0%
-5.2%
-1.6%
-0.4%
-1.3%
-2.1%
-3.5%
-6.6%
297
-13.4%
321
-3.0%
341
-0.3%
455
25.0%
1,414
2.5%
357
20.2%
387
20.6%
-5%
-5%
Financial
Revenue (£m)
Public Sector & Major Business (ex RoI)
YoY
Corporate
YoY
SME
YoY
Republic of Ireland
YoY
Other (incl. eliminations)
YoY
Total
YoY
- of which internal
YoY
- of which transit
YoY
Underlying revenue 1 excluding transit (YoY )
EBITDA (£m)
YoY
343
331
342
364
1,380
Underlying EBITDA 1 adjusted for acquisition of EE (YoY)
Operating profit (£m)
YoY
Capex (£m)
YoY
Operating free cash flow (£m)
YoY
285
276
278
306
1,145
233
-18.2%
250
-9.4%
283
1.8%
364
19.0%
1,130
-1.3%
271
16.3%
297
18.8%
30
45
41
44
160
30
0.0%
38
-15.6%
38
-7.3%
47
6.8%
153
-4.4%
56
86.7%
56
47.4%
179
237
234
420
1,070
111
-38.0%
254
7.2%
289
23.5%
447
6.4%
1,101
2.9%
252
127.0%
306
20.5%
890
731
990
1,170
3,781
586
-34.2%
981
34.2%
738
-25.5%
858
-26.7%
3,163
-16.3%
652
11.3%
847
-13.7%
Operational
Order intake (£m)
YoY
Note: Financial and operational measures include EE's business customers from Q1 2016/17 onwards
1
excludes specific items, foreign exchange movements and disposals, and from Q1 2016/17 onwards is calculated as though EE had been part of the group from 1 April 2015
2014/15
5. Global Services
2015/16
2016/17
Q1
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q2
375
365
352
397
1,489
483
473
511
496
1,963
278
304
322
320
1,224
117
131
140
165
553
1,253
1,273
1,325
1,378
5,229
88
88
93
84
353
336
-10.4%
436
-9.7%
285
2.5%
139
18.8%
1,196
-4.5%
72
-18.2%
368
0.8%
442
-6.6%
268
-11.8%
134
2.3%
1,212
-4.8%
71
-19.3%
375
6.5%
481
-5.9%
280
-13.0%
171
22.1%
1,307
-1.4%
73
-21.5%
412
3.8%
531
7.1%
282
-11.9%
163
-1.2%
1,388
0.7%
84
0.0%
1,491
0.1%
1,890
-3.7%
1,115
-8.9%
607
9.8%
5,103
-2.4%
300
-15.0%
363
8.0%
479
9.9%
263
-7.7%
145
4.3%
1,250
4.5%
78
8.3%
419
13.9%
530
19.9%
294
9.7%
166
23.9%
1,409
16.3%
90
26.8%
-1.1%
-0.7%
3.4%
0.4%
0.5%
0.0%
3.5%
93
19.2%
113
2.7%
162
13.3%
233
9.9%
601
10.7%
119
28.0%
132
16.8%
7%
0%
Financial
Revenue (£m)
UK
YoY
Continental Europe
YoY
US, Canada & LatAm
YoY
AsiaPac & MEA
YoY
Total
YoY
- of which transit
YoY
Underlying revenue 1 excluding transit (YoY )
EBITDA (£m)
YoY
78
110
143
212
543
Underlying EBITDA 1 adjusted for acquisition of EE (YoY)
Operating profit (£m)
YoY
Capex (£m)
YoY
Operating free cash flow (£m)
YoY
(40)
1
36
103
100
(13)
n/m
12
1100.0%
61
69.4%
119
15.5%
179
79.0%
13
n/m
24
100.0%
97
98
106
113
414
81
-16.5%
97
-1.0%
96
-9.4%
109
-3.5%
383
-7.5%
91
12.3%
100
3.1%
(353)
(23)
20
384
28
(279)
n/m
35
n/m
23
15.0%
372
-3.1%
151
439.3%
(283)
n/m
58
65.7%
798
1,092
1,592
1,518
5,000
1,077
35.0%
1,363
24.8%
1,423
-10.6%
1,261
-16.9%
5,124
2.5%
960
-10.9%
1,501
10.1%
Operational
Order intake (£m)
YoY
Note: Financial and operational measures include EE's business customers from 29 January 2016 (partway through Q4 2015/16) onwards
1
excludes specific items, foreign exchange movements and disposals, and from Q1 2016/17 onwards is calculated as though EE had been part of the group from 1 April 2015
n/m = not meaningful
2014/15
6. Wholesale and Ventures
Q1
Q2
Q3
Q4
FY
Q1
Q2
2015/16
Q3
Q4
FY
2016/17
Q1
133
137
144
154
568
159
150
152
151
612
183
182
179
217
761
1
1
1
2
5
69
77
75
76
297
28
32
31
27
118
573
579
582
627
2,361
19
18
20
23
80
46
43
38
35
162
152
14.3%
142
-10.7%
186
1.6%
2
n/m
66
-4.3%
30
7.1%
578
0.9%
20
5.3%
27
-41.3%
149
8.8%
150
0.0%
178
-2.2%
1
n/m
71
-7.8%
26
-18.8%
575
-0.7%
21
16.7%
18
-58.1%
160
11.1%
153
0.7%
169
-5.6%
1
n/m
72
-4.0%
23
-25.8%
578
-0.7%
21
5.0%
20
-47.4%
108
-29.9%
147
-2.6%
143
-34.1%
33
n/m
83
9.2%
29
7.4%
543
-13.4%
32
39.1%
16
-54.3%
569
0.2%
592
-3.3%
676
-11.2%
37
n/m
292
-1.7%
108
-8.5%
2,274
-3.7%
94
17.5%
81
-50.0%
97
-36.2%
139
-2.1%
134
-28.0%
54
n/m
69
4.5%
25
-16.7%
518
-10.4%
27
35.0%
15
-44.4%
90
-39.6%
143
-4.7%
129
-27.5%
54
n/m
82
15.5%
24
-7.7%
522
-9.2%
39
85.7%
14
-22.2%
4.6%
3.9%
2.6%
-10.2%
-0.3%
-5.5%
-4.6%
185
14.9%
175
1.7%
182
-2.2%
213
-6.2%
755
1.2%
199
7.6%
204
16.6%
-14%
-2%
Q2
Financial
Revenue (£m)
Managed services
YoY
Data & broadband
YoY
Voice
YoY
Mobile
YoY
Ventures
YoY
Other
YoY
Total
YoY
- of which internal
YoY
- of which transit
YoY
Underlying revenue 1 excluding transit (YoY )
EBITDA (£m)
YoY
161
172
186
227
746
Underlying EBITDA 1 adjusted for acquisition of EE (YoY)
Operating profit (£m)
YoY
97
110
125
169
501
119
22.7%
112
1.8%
125
0.0%
146
-13.6%
502
0.2%
123
3.4%
129
15.2%
Capex (£m)
YoY
56
58
67
113
294
56
0.0%
53
-8.6%
45
-32.8%
55
-51.3%
209
-28.9%
50
-10.7%
51
-3.8%
Operating free cash flow (£m)
YoY
42
115
137
122
416
111
164.3%
108
-6.1%
166
21.2%
151
23.8%
536
28.8%
134
20.7%
155
43.5%
Order intake (£m)
YoY
262
245
433
947
1,887
336
28.2%
344
40.4%
341
-21.2%
400
-57.8%
1,421
-24.7%
312
-7.0%
302
-12.4%
Ethernet Circuits (‘000)
Net adds in quarter
26.5
28.2
1.7
30.1
1.9
31.7
1.6
33.6
1.9
35.5
1.9
37.5
2.0
38.5
1.6
40.3
1.8
41.5
1.2
Operational
Note: Financial and operational measures include EE as an external customer up to 29 January 2016 (partway through Q4 2015/16). It is not longer included after that point
1
excludes specific items, foreign exchange movements and disposals, and from Q1 2016/17 onwards is calculated as though EE had been part of the group from 1 April 2015
2
Ethernet circuits include volumes from EE as an external customer up to 29 January 2016. Q4 2015/16 net adds include EE net adds for January, but not for February and March
n/m = not meaningful
2
2014/15
7. Openreach
2015/16
2016/17
Q1
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q2
509
497
497
493
1,996
296
294
298
292
1,180
222
218
224
227
891
104
119
124
140
487
114
117
112
114
457
1,245
1,245
1,255
1,266
5,011
769
764
764
767
3,064
483
-5.1%
298
0.7%
220
-0.9%
148
42.3%
100
-12.3%
1,249
0.3%
755
-1.8%
480
-3.4%
297
1.0%
227
4.1%
164
37.8%
99
-15.4%
1,267
1.8%
766
0.3%
478
-3.8%
309
3.7%
225
0.4%
180
45.2%
102
-8.9%
1,294
3.1%
768
0.5%
474
-3.9%
299
2.4%
228
0.4%
185
32.1%
104
-8.8%
1,290
1.9%
769
0.3%
1,915
-4.1%
1,203
1.9%
900
1.0%
677
39.0%
405
-11.4%
5,100
1.8%
3,058
-0.2%
461
-4.6%
289
-3.0%
199
-9.5%
197
33.1%
106
6.0%
1,252
0.2%
747
-1.1%
468
-2.5%
285
-4.0%
194
-14.5%
224
36.6%
102
3.0%
1,273
0.5%
767
0.1%
EBITDA (£m)
YoY
624
625
651
697
2,597
638
2.2%
646
3.4%
677
4.0%
698
0.1%
2,659
2.4%
632
-0.9%
630
-2.5%
Operating profit (£m)
YoY
275
290
319
365
1,249
303
10.2%
317
9.3%
357
11.9%
381
4.4%
1,358
8.7%
300
-1.0%
297
-6.3%
Capex (£m)
YoY
258
246
300
278
1,082
402
55.8%
348
41.5%
321
7.0%
376
35.3%
1,447
33.7%
337
-16.2%
357
2.6%
Operating free cash flow (£m)
YoY
297
338
470
392
1,497
269
-9.4%
327
-3.3%
419
-10.9%
400
2.0%
1,415
-5.5%
235
-12.6%
456
39.4%
Internal physical lines ('000)
12,594
12,453
12,367
12,274
12,179
12,127
12,107
12,915
12,845
12,795
External physical lines ('000)
4,551
4,543
4,551
4,509
4,501
4,457
4,439
3,563
3,560
3,553
Fully unbundled physical lines (MPF) ('000)
8,013
8,180
8,371
8,586
8,688
8,798
8,874
8,921
8,934
8,950
25,159
25,176
17
25,289
113
25,370
81
25,368
-1
25,382
14
25,420
38
25,398
-22
25,340
-59
25,298
-42
Financial
Revenue (£m)
WLR
YoY
LLU
YoY
Ethernet
YoY
Fibre broadband
YoY
Other
YoY
Total
YoY
- of which internal
YoY
Operational
Total physical lines ('000)
QoQ ('000)
EE lines are shown as internal for the whole period, as prior to acquisition they were included within BT Wholesale's numbers as a customer
8. Broadband, TV and Lines (across BT)
2014/15
Q2
Q1
2015/16
Q3
Q4
Q1
Q2
Q3
2016/17
Q1
Q4
Q2
Broadband ('000)
Total retail broadband
4
7,473
88
7,592
119
7,713
121
7,796
83
7,879
82
7,996
130
64%
40%
48%
40%
46%
40%
49%
40%
56%
40%
51%
40%
71%
40%
81%
45%
2,332
226
2,535
203
2,744
209
3,010
266
3,226
217
3,438
212
3,689
250
4,076
214
8
1,866
-5
1,859
-8
1,873
14
1,831
-42
1,842
11
1,847
5
1,853
-6
906
-8
6
9,252
8,013
1,353
18,618
163
9,332
8,180
1,288
18,800
182
9,465
8,371
1,222
19,058
258
9,544
8,586
1,175
19,306
248
9,639
8,688
1,128
19,455
149
9,726
8,798
1,091
19,615
160
9,850
8,874
1,073
19,797
182
Of which:
Openreach fibre base
3,019
3,363
3,738
4,193
4,582
4,997
Net adds in quarter
341
344
375
455
389
415
1,202
1,308
1,397
Total retail share of DSL + fibre net adds
Total retail share of DSL + fibre installed base
Of which:
Total retail fibre base
Net adds in quarter
9,041
105
6
7,385
104
Total retail broadband
Net adds in quarter
7
7
9,117
76
9,193
76
79%
46%
65%
46%
4,257
181
4,473
216
Wholesale and Ventures
Wholesale and Ventures external broadband
Net adds in quarter
4
885
-2
11
882
-3
9,947
8,921
1,059
19,927
130
10,002
8,934
1,067
20,003
95
11
10,074
8,950
1,094
20,119
116
5,492
5,907
6,239
6,679
494
415
333
440
1,620
1,684
9
Openreach1
Internal DSL & fibre broadband (sold to other BT lines of business)
Full LLU (MPF)
Shared LLU (SMPF) + external fibre on WLR lines
Total DSL + fibre
Net adds in quarter
11
TV (Consumer and EE)
TV customers ('000)
Net adds in quarter
1,007
2
5
1,045
1,090
1,142
40
38
45
52
Total Consumer/EE lines
QoQ
9,839
9,754
9,694
9,633
9,574
9,522
9,528
10,411
-85
-60
-61
-59
-52
6
-5
Business/Corporate lines
3,671
3,603
3,518
3,481
3,403
3,368
3,307
3,228
-68
-85
-70
13,510
13,357
-153
13,212
-145
13,114
-132
60
106
97
1,561
74
10
59
64
Lines
Lines sold through BT lines of business ('000)
QoQ
Total
QoQ
1
Openreach figures include Northern Ireland
2
Base adjusted to remove 35k inactive customers
3
Excludes 34k lines relating to reporting adjustment
4
Adjusted for 13k account move
5
Base adjusted to remove 7k inactive customers
6
Base reflects 951k EE broadband lines transferred from Wholesale external broadband base to retail broadband base
7
Net adds includes EE net adds since 29 January 2016 and BT net adds since 31 December 2015
8
Base includes 184k EE fibre broadband lines, transferred from Wholesale external broadband base
9
Net adds adjusted for transfer of EE from base to BT retail. Includes EE's net adds for January
10
Net adds adjusted to remove impact of EE base being added from 29 January 2016 onwards
11
19k base adjustment following base review
12
16k base adjustment largely related to inclusion of EE now as internal
3
3
-79
-34
-61
-87
12,977
-137
12,890
-86
12,835
-56
13,639
-92
10,392
10
10,376
-19
3,130
-16
12
3,068
12
13,445
-77
-82
10
13,522
-101
-62
2015/16
9. Mobile (across BT)
Q4
2016/17
Q1
Q2
000s
Mobile base ('000) - across BT
Postpaid mobile
Net adds
Prepaid mobile
Net adds
Machine-to-Machine
Net adds
MVNO
Net adds
Total
Net adds
1
16,113
165
8,251
-426
2,361
86
3,720
28
30,445
-147
16,168
244
7,960
-291
2,384
23
3,756
36
30,268
12
2.8%
1.1%
2.2%
1.0%
2.4%
1.0%
26.7
3.9
18.6
27.2
4.1
19.2
27.4
4.4
19.7
1
16,448
280
7,635
-325
2,392
8
3,773
17
30,248
-20
Churn (%) - EE only
Average monthly churn
Postpaid mobile churn
Mobile ARPU (£ per month)2
Postpaid
Prepaid
Total base
Note: Base comprises all BT Group mobile
Note: Q4 net adds comprise 3 months of BT branded mobile net adds and 2 months of EE net adds since acquisition on 29 January 2016
1
Base adjusted to remove 189k inactive customers
2
Consistent with EE Limited ARPU calculation and excludes Consumer mobile customers, who are included in the Consumer ARPU calculation
2014/15
10. Costs
2015/16
2016/17
Q1
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Direct labour costs before leaver costs
1
Indirect labour costs
Leaver costs
Gross labour costs
Capitalised labour
Net labour costs
1,177
200
2
1,379
(261)
1,118
1,154
190
1
1,345
(260)
1,085
1,121
200
1
1,322
(273)
1,049
1,093
184
4
1,281
(349)
932
4,545
774
8
5,327
(1,143)
4,184
1,142
184
16
1,342
(290)
1,052
1,141
186
20
1,347
(291)
1,056
1,074
172
62
1,308
(287)
1,021
1,173
192
11
1,376
(288)
1,088
4,530
734
109
5,373
(1,156)
4,217
1,274
194
40
1,508
(279)
1,229
1,307
208
14
1,529
(309)
1,220
Payments to telecommunications operators1
Property and energy costs1,2
1,2
Network operating and IT costs
Programme rights charges
1,2
Other costs
Operating costs before depreciation and specific items
530
244
159
78
790
2,919
552
241
153
83
819
2,933
550
238
153
84
834
2,908
512
245
140
85
906
2,820
2,144
968
605
330
3,349
11,580
496
245
136
86
814
2,829
533
241
163
135
811
2,939
517
247
152
162
882
2,981
637
291
193
161
1,210
3,580
2,183
1,024
644
544
3,717
12,329
635
291
220
163
1,419
3,957
692
309
235
177
1,532
4,165
Depreciation and amortisation
Total operating costs before specific items
Specific items
Total operating costs
652
3,571
44
3,615
618
3,551
112
3,663
618
3,526
48
3,574
650
3,470
177
3,647
2,538
14,118
381
14,499
628
3,457
89
3,546
623
3,562
84
3,646
592
3,573
53
3,626
787
4,367
122
4,489
2,630
14,959
348
15,307
855
4,812
33
4,845
869
5,034
103
5,137
39
30
97
56
258
36
516
52
45
98
58
246
34
533
47
41
106
67
300
38
599
69
44
113
113
278
61
678
207
160
414
294
1,082
169
2,326
52
30
81
56
402
37
658
56
38
97
53
348
37
629
46
38
96
45
321
41
587
53
96
47
109
55
376
40
776
207
96
153
383
209
1,447
155
2,650
58
150
56
91
50
337
35
777
53
149
56
100
51
357
36
802
Q2
Operating costs (£m)
Capital expenditure (£m)
Capital expenditure by line of business
Consumer
EE
Business and Public Sector
Global Services
Wholesale and Ventures
Openreach
Other
Total
1
Q4 & FY 2015/16 have been restated to be presented on a consistent basis as Q2 2016/17
2
Q1 2016/17 has been restated to be presented on a consistent basis as Q2 2016/17
11. Glossary
Consumer
Revenue
Calls & lines
Broadband & TV
Other (incl. eliminations)
Internal
Operational
Consumer ARPU
All measures include consumers in Northern Ireland, and Plusnet's consumer business
Calls revenue is local and national geographic calls, international direct dial, fixed to mobile, other non-geographic calls and revenue from call packages sold to consumers in the UK. Lines revenue is rentals, connections and calling features revenue for analogue and digital
lines sold to consumers in the UK. Also includes revenue from BT Mobile plans.
Revenue from broadband sold to consumers in the UK. Includes BT Infinity; BT TV; and retail, wholesale and commercial BT Sport.
Mainly sales of telephones and other equipment, BT Wi-fi direct revenue from the sale of wi-fi vouchers to customers, and wi-fi revenue from corporate customers.
Mainly BT Wi-fi revenue from services sold by Global Services on certain contracts; services and applications sold by Plusnet to Global Services.
12 month rolling consumer revenue, less mobile POLOs, less BT Sport revenue from: satellite customers paying for the channels, our wholesale deals and from commercial premises. This is divided by the average number of primary lines and then by 12 to give a monthly
figure.
EE
Revenue
Postpaid mobile
Prepaid mobile
Fixed
Equipment
Underlying revenue excluding transit
The revenue from postpaid customers (voice, data and messaging) generated through use of the mobile network, including revenues generated by incoming and outgoing calls, network access fees, roaming revenues from customers of other networks and revenues from
value-added services
The revenue from prepaid customers (voice, data and messaging) generated through use of the mobile network, including revenues generated by incoming and outgoing calls, network access fees, roaming revenues from customers of other networks and revenues from
value-added services
Revenue from fixed line services sold to consumers in the UK
Revenues from the sale of handsets, tablets and other mobile devices
The YoY change in underlying revenue excluding transit. Excludes specific items, foreign exchange movements and disposals, and for Q1 2016/17 is calculated as though EE had been part of the group from 1 April 2015
Business and Public Sector
Revenue
Public Sector & Major Business (ex RoI)
Corporate
Revenue from parts of the former BT Global Services line of business that are UK focused, including a large proportion of public sector. In Northern Ireland, includes revenue from the corporate sector, the public sector plus internal charges related to usage of the network.
Also includes revenue from BT Expedite, Fresca and BT IT Services
Revenue from products sold to mid-tier corporates in Great Britain under the BT brand, including, but not exclusively, calls, lines, broadband, mobile including EE, ICT and managed network services. Also includes revenues from BT Business Direct.
SME
Republic of Ireland
Other (incl. eliminations)
Internal
Transit
Underlying revenue excluding transit
Revenue from products sold to SMEs in the UK under both the BT and Plusnet brands, including, but not exclusively, calls, lines, broadband, mobile including EE, ICT and managed network services.
Republic of Ireland includes revenue from the corporate sector, the public sector and from wholesale network services.
Includes eliminations of revenue shown gross in the reported channels from internal BPS trading, such as through Expedite and usage of the network in Northern Ireland.
Contains BT Expedite revenue from Global Services and internal charges to other parts of BT relating to usage of the network in Northern Ireland.
Ireland revenues from the carriage of telecoms traffic across BT's network where neither the originating nor the terminating network is owned or controlled by BT (including the pass through of mobile terminating traffic)
The YoY change in underlying revenue excluding transit. Excludes specific items, foreign exchange movements and disposals, and for Q1 2016/17 is calculated as though EE had been part of the group from 1 April 2015
Operational
Order intake
Orders for calls & lines, broadband, mobile, Data Networks, Outsourcing Solutions, IT services and EE Mobile Services sold by Business & Public Sector and EE Business in the UK and Ireland. Includes all connections, installations and one-off charges, plus all recurring
charges for the term of the contract. Excludes orders for volume products such as calls & lines and broadband ordered directly through our outbound sales desks. EE Business sales order value only included from 1 February 2016 onwards
Global Services
Revenue
Underlying revenue excluding transit
Operational
Order intake
As a principle, the geographic split of revenue is based on the country of origin from which the customer is invoiced. Where a customer relationship is in one country and the billing is across a number of jurisdictions, the geographic split is based on where the primary
customer relationship is held. Reported growth rates are not adjusted for the effect of foreign exchange movements.
The YoY change in underlying revenue excluding transit. Excludes specific items, foreign exchange movements and disposals, and for Q1 2016/17 is calculated as though EE had been part of the group from 1 April 2015
Orders for all business types including new business, growth, renewals and extensions. Where a renewal or extension overlaps with a previous contract value reported as Order intake, only the incremental increase is included.
Wholesale and Ventures
Revenue
Managed services
Data & broadband
Voice
Mobile
Ventures
Other
Internal
Transit
Underlying revenue excluding transit
Operational
Order intake
Ethernet circuits
Managed network services, which includes Mobile Ethernet Access Services (MEAS)
Fixed Ethernet and Wholesale Broadband Connect revenue from sales to external CP customers including those not deemed managed services. Excludes managed broadband network service contracts. Includes other wholesale data revenue - IPStream Connect,
Datastream and MPLS products such as SHDS (Short Haul Data Services) & IP Clear
Direct (TDM call traffic generating revenue for Wholesale and Ventures) and indirect conveyance (CPs and Indirect access to other CPs), wholesale calls (not sold as part of a managed service) and interconnect circuits. Also includes Voice over IP services (including IP
Exchange) and smaller voice products including Directories and Other Voice (for e.g. Fixed Lines SMS and Advanced Voice Services). Includes transit revenue.
Wholesale of voice minutes, SMS, and data through a range of products from radio network access through to fully managed services, mobile network provider to MVNOs, mobile data analytics and Machine to Machine.
Ventures include: Voice business that include Directory Enquiries, Operator Assistance, Next Generation Text, Phonebook and Directory Solutions, Payphones, Redcare Fire and Security.
BT Fleet supplies cars, commercial vehicles and related services in the UK to both BT and external customers. Supply Chain provides logistic services. BT Cables is a manufacturing operation producing cables. Tikit provides technology solutions and services to legal and
professional firms.
Revenue from other lines of business, largely driven by Ventures businesses
UK revenues from the carriage of telecoms traffic across BT's network where neither the originating nor the terminating network is owned or controlled by BT (includes the pass through of mobile terminating traffic)
The YoY change in underlying revenue excluding transit. Excludes specific items, foreign exchange movements and disposals, and for Q1 2016/17 is calculated as though EE had been part of the group from 1 April 2015
Orders for all business types including new business, growth, renewals and extensions.
Rental Systems Size reflects the amount of connected circuits
Openreach
Revenue
WLR
LLU
Ethernet
Fibre broadband
Other
Internal
Operational
Internal physical lines
External physical lines
Fully unbundled physical lines (MPF)
Internal and external WLR connection and rental revenue
Internal and external SMPF and MPF connection and rental revenue, co-location connection and rental revenue, copper port build, tie cables and TAMs
Internal and external Ethernet connection and rental revenue
Internal and external Fibre connection and rental revenue
Primarily revenue from service-based activity and some legacy connectivity products
Primarily rental and connection revenue related to WLR, SMPF, Ethernet and fibre supplied to the customer-facing BT lines of business
Lines provided by Openreach to other BT lines of business - including EE, Plusnet and physical lines operated by Consumer and Business and Public Sector in Northern Ireland (includes analogue lines and ISDN lines provided over copper (WLR) and FTTP, but excludes nonequivalent traded products and ISDN30)
Lines provided by Openreach to external CPs (includes analogue and ISDN lines provided over copper (WLR), but excludes full LLU (MPF) and ISDN30)
MPF lines provided by Openreach to external CPs
Broadband, TV and Lines (across BT)
Total retail broadband
Total retail broadband
Total retail fibre base
Wholesale and Ventures
Wholesale and Ventures external broadband
Openreach
Internal DSL & fibre broadband
(sold via other BT lines of business)
Full LLU (MPF)
Shared LLU (SMPF) + external fibre on WLR lines
Total DSL + fibre
Openreach fibre base
BT's total retail broadband base (including retail fibre) - Consumer (including Plusnet and Northern Ireland), EE, Business and Public Sector, and broadband lines sold by Global Services
BT's total retail fibre base - Consumer (including Plusnet and Northern Ireland), EE, and Business and Public Sector. Included within retail broadband numbers
Total broadband lines sold by Wholesale and Ventures to external CP customers
Total broadband (including fibre) lines sold via BT lines of business. Calculated as the sum of 'Total retail broadband' base + 'Wholesale and Ventures external broadband' base
MPF lines provided by Openreach to other external CPs
SMPF lines provided by Openreach to other external CPs - includes fibre provided by Openreach to other CPs on WLR lines
Total number of broadband lines sold by Openreach both internally and externally. Includes fibre. Calculated as the total of the 3 rows above
Total fibre lines sold by Openreach, both internally to BT lines of business and externally to other CPs. Included within the 'Total DSL + fibre' number
TV
TV additions
Lines
Consumer / EE lines
Business / Corporate lines
Total number of customers, with either a BT Vision, YouView or EE TV box, that are registered & enabled to receive video on demand. Includes YouView TV from Plusnet.
Total number of UK consumer analogue lines and ISDN channels (WLR) sold by Consumer and EE. Includes consumers in Northern Ireland and Plusnet.
Total lines (analogue lines and ISDN channels (WLR)) sold by Global Services, Business and Public Sector and Wholesale and Ventures
Mobile (across BT)
Postpaid mobile
Prepaid mobile
Machine-to-machine
MVNO
Churn - EE only
Mobile ARPU
Customers with whom BT/EE has a formal contractual agreement. The customer is billed on a monthly basis for access fees and any additional voice or data use. Excludes MVNO customers. Includes EE, Consumer, Business and Public Sector and UK-based Global Services
customers.
Customers who pay in advance for any data or voice use. All customers are in EE only. Excludes MVNO customers.
The number of individual machine-to-machine devices connected to the network
The number of mobile virtual network customers connected to the network, reported a quarter in arrears
Total number of customers who disconnect or are considered to have disconnected from its network, voluntarily or involuntarily (excluding money-back return and fraudulent connections) for the period divided by the weighted average number of customers over the
same period, stated as a monthly average
Total mobile operating revenues (i.e. excluding equipment revenues) divided by mobile base. This excludes MVNO/M2M revenue and bases.
Costs
Indirect labour costs
Direct labour costs
Labour costs that relate to agency and subcontract
Total gross costs associated with wages and salaries, social security costs, pension costs, employee profit share and share based payments