bta201202036k.htm
 
SECURITIES AND EXCHANGE COMMISSION
 
 
Washington, D.C. 20549
 
 
FORM 6-K
 
 
Report of Foreign Private Issuer
 
 
Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 
 
Date of Announcement: 03 February 2012
 
 
BT Group PLC
 
 
(Translation of registrant's name into English)


 
 
BT Group PLC

81 Newgate Street

London

EC1A 7AJ

England
 
 
(Address of principal executive offices)

 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


 
 
Form 20-F..X...             Form 40-F.....

 

 
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


 
 
Yes .....           No ..X..



 
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________









 
3 February 2012
 
BT GROUP PLC
 
RESULTS FOR THE THIRD QUARTER AND NINE MONTHS TO 31 DECEMBER 2011
 
BT Group plc (BT.L) today announces its results for the third quarter and nine months to 31 December 2011.
 
 
Third quarter and nine months results:
 
   
Third quarter to
31 December 2011
Nine months to
31 December 2011
   
£m  
Change
£m  
Change
Revenue1
  
4,774  
(5)%
14,432  
(4)%
Underlying revenue excluding transit
  
(3.0)%
  
(1.8)%
EBITDA1
  
1,524  
3%
4,455  
3%
Profit before tax
- adjusted1
628  
18%
1,731  
18%
 
- reported
652  
48%
1,721  
41%
Earnings per share
- adjusted1
   6.1p
13%
16.9p
13%
 
- reported
6.3p
40%
17.7p
33%
Free cash flow 2
  
634  
£65m
1,613  
£9m
Net debt
      
7,736  
£(938)m
 
 
 
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 EBITDA1 target of above £6bn a year early and to deliver free cash flow2 of around £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.
 

 
 
RESULTS FOR THE THIRD QUARTER AND NINE MONTHS TO 31 DECEMBER 2011
 
Group results
 
 
Third quarter to 31 December
Nine months to 31 December
 
2011  
2010  
Change
2011  
2010  
Change
 
£m  
£m  
%
£m  
£m  
%
Revenue
            
- adjusted1
4,774  
5,038  
(5)
14,432  
15,021  
(4)
- reported (see Note below)
4,774  
5,038  
(5)
14,022  
15,021  
(7)
- underlying excluding transit2
  
(3.0)
    
(1.8)
EBITDA
            
- adjusted1
1,524  
1,484  
3
4,455  
4,335  
3
- reported
1,498  
1,379  
9
4,296  
4,108  
5
Operating profit
            
- adjusted1
790  
733  
8
2,229  
2,118  
5
- reported
764  
628  
22
2,070  
1,891  
9
Profit before tax
            
- adjusted1
628  
531  
18
1,731  
1,473  
18
- reported
652  
441  
48
1,721  
1,222  
41
Earnings per share
            
- adjusted1
6.1p
5.4p
13
16.9p
14.9p
13
- reported
6.3p
4.5p
40
 17.7p
13.3p
33
Capital expenditure
665  
680  
(2)
1,899  
1,811  
5
Free cash flow3
            
- adjusted1
634  
569  
11
1,613  
1,604  
1
- reported
586  
515  
14
1,462  
1,465  
0
Net debt
      
7,736  
8,674  
(11)
 
 
Note: Reported revenue for the nine months to 31 December 2011 includes a specific charge of £410m recognised in Q2 2012 relating to a retrospective regulatory ruling in Germany, which had no impact on profits or cash.
 
Line of business results1
 
 
Revenue
EBITDA
Operating cash flow
Third quarter to
2011
20104
Change
2011
20104
Change
2011
20104
Change
31 December
£m
£m
%
£m
£m
%
£m
£m
%
BT Global Services
1,894
1,978
(4)
144
141
2
134
115
17
BT Retail
1,849
1,954
(5)
453
452
0
284
324
(12)
BT Wholesale
979
1,069
(8)
303
330
(8)
145
141
3
Openreach
1,300
1,240
5
591
550
7
304
316
(4)
Other and intra-group items
(1,248)
(1,203)
(4)
33
11
n/m
(233)
(327)
29
Total
4,774
5,038
(5)
1,524
1,484
3
634
569
11
 
1 Before specific items. Specific items are defined below
2 Underlying revenue excluding transit is defined below
3 Before pension deficit payment of £525m in Q3 2011
4 Restated for the impact of customer account moves. See Note 1 to the condensed consolidated financial statements
n/m = not meaningful
 
 
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.
 
Enquiries
 
Press office:
Ross Cook                                                                                Tel: 020 7356 5369
 
Investor relations:
Catherine Nash                                                                        Tel: 020 7356 4909
 
 
A conference call for analysts and investors will be held at 9.00am today and a simultaneous webcast will be available at www.bt.com/results
 
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 £20,076m with profit before taxation of £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
 
 
Click on, or paste the following link into your web browser, to view the associated PDF document.
 
http://www.rns-pdf.londonstockexchange.com/rns/7322W_-2012-2-2.pdf
 

 





 
 
Signatures
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



 
 
BT Group PLC
(Registrant)

 
By: /s/ Patricia Day
--------------------



 
Patricia Day, Assistant Secretary.

 
Date 03 February 2012