bta201011116k.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

 
 
11 November 2010
 
 
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- ________









                                   
 
 
            11 November 2010
 
 
BT GROUP PLC
 
 
RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2010
 
 
 
BT Group plc (BT.L) today announces its results for the second quarter and half year to 30 September 2010. Unless otherwise stated, the changes in results are year on year against the second quarter or half year to 30 September 2009.
 
 
Key points for the second quarter:
 
 
·   Adjusted revenue1 of £4,977m, down 3%
 
·   Adjusted EBITDA1 of £1,452m, up 3%
 
·   Adjusted profit before tax1 of £496m, up 13% (reported profit before tax of £406m, up 48%)
 
·   Adjusted earnings per share1 of 5.1p, up 16% (reported earnings per share down 7% due to prior year tax credit)
 
·   Free cash flow2 of £535m; £950m in the half year, up 63%
 
·   Net debt2 of £8.7bn, down by £1.2bn
 
·   Interim dividend of 2.4p per share, up 4%
 
·   2010/11 full year outlook raised:
 
-    adjusted EBITDA1 expected to be around £5.8bn
 
-    free cash flow1 expected to be £2bn
 
·   Free cash flow1 in 2011/12 and 2012/13 expected to be above £2bn
 
 
Ian Livingston, Chief Executive, commenting on the results, said:
 
"We have made significant progress in improving profitability and cash flow, enabling us to invest in building the foundations for revenue growth in 2012/13.
 
"We have increased our EBITDA outlook for the year and now expect to hit our £2bn free cash flow target two years early.
 
"Global Services order intake was up 50% at £2.1bn. Our fibre roll out has passed three million premises and BT Infinity orders are now running at over 4,000 per week. BT Vision customers now stand at more than half a million, with more developments planned to enhance our offering. Our share of DSL broadband net additions was 45%, one of our highest shares ever."
 
 
1 Before specific items. Specific items are defined on page 18
2 Free cash flow and net debt are defined on page 20
 

 
RESULTS FOR THE SECOND QUARTER AND HALF YEAR TO 30 SEPTEMBER 2010
 
Group results
 
Second quarter to 30 September
  
Half year to 30 September
 
2010
  
  2009
  
Change
  
2010
  
2009
  
Change
 
£m
  
£m
  
%
  
£m
  
£m 
  
%
Revenue
                      
- adjusted1
4,977
  
5,122
  
(3)
  
9,983
  
10,357
  
(4)
- reported
4,977
  
5,070
  
(2)
  
9,983
  
10,305
  
(3)
EBITDA
                      
- adjusted1
1,452
  
1,415
  
3
  
2,851
  
2,741
  
4
- reported
1,381
  
1,309
  
6
  
2,729
  
2,594
  
5
Operating profit
                      
- adjusted1
715
  
656
  
9
  
1,385
  
1,244
  
11
- reported
644
  
550
  
17
  
1,263
  
1,097
  
15
Profit before tax
                      
- adjusted1
496
  
440
  
13
  
942
  
822
  
15
- reported
406
  
275
  
48
  
781
  
547
  
43
Earnings per share
                      
- adjusted1
5.1p
  
4.4p
  
16
  
9.5p
  
8.2p 
  
16
- reported
5.1p
  
5.5p
  
(7)
  
8.8p
  
8.3p 
  
6
Interim dividend
-
  
-
  
-
  
2.4p
  
2.3p 
  
4
Capital expenditure
608
  
558
  
9
  
1,131
  
1,117
  
1
Free cash flow
535
  
705
  
(24)
  
950
  
583
  
63  
Net debt
-
  
-
  
-
  
8,704
  
9,878
  
(12)
 
Line of business results
 
Adjusted  revenue1
Adjusted EBITDA1
Operating cash flow
Second quarter to
2010
20092
Change
2010
20093
Change
2010
20093
Change
30 September
£m
£m
%
£m
£m
%
£m
£m
%
BT Global Services
1,991
2,024
(2)
138
95
45
(28)
(103)
73
BT Retail
1,929
2,019
(4)
414
451
(8)
333
430
(23)
BT Wholesale
1,054
1,109
(5)
326
344
(5)
222
212
5
Openreach
1,235
1,234
-
532
507
5
255
280
(9)
Other and intra-group items
(1,232)
(1,264)
3
42
18
133
(247)
(114)
(117)
Total
4,977
5,122
(3)
1,452
1,415
3
535
705
(24)
 
1 Before specific items. Specific items are defined below and analysed in Note 5
2 Adjusted for the impact of customer account moves and the impact of changes in the internal trading model.  The effect of the changes is primarily to reduce internal revenue in both BT Wholesale and Openreach by around £62m per quarter in 2010/11. There is no impact from these changes on total group revenue. In the line of business commentaries for BT Wholesale and Openreach, revenue has been measured against an adjusted basis taking account of the changes in the internal trading model to enable a like for like comparison
3 Restated for the impact of customer account moves.  See Note 1
 
Notes: Unless otherwise stated, any reference to 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 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 EBITDA, reported operating profit, reported profit before tax and reported EPS are the equivalent unadjusted or statutory measures. Unless otherwise stated, the change in results is year on year.
 
The income statement, cash flow statement, statements of comprehensive income and equity and balance sheet are provided on pages 11 to 15. A reconciliation of group operating profit to EBITDA (as defined above) is provided in Note 6. A reconciliation of reported profit before tax (as defined above) to adjusted profit before tax is provided in Note 7. A reconciliation of reported EPS (as defined above) to adjusted EPS is provided in Note 8. A definition and reconciliation of free cash flow and net debt are provided in Notes 9 and 10.
 

 
 
Enquiries
 
Press office:
  
Ross Cook
Tel: 020 7356 5369
   
Investor relations:
  
Catherine Nash
Tel: 020 7356 4909
 
A presentation for analysts and investors will be held in London at 9.00am today and a simultaneous webcast will be available at www.bt.com/results.
 
Results for the third quarter to 31 December 2010 are expected to be announced on 3 February 2011.
 
About BT
BT is one of the world's leading providers of communications solutions and services operating in over 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our 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.
 
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/9958V_-2010-11-10.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  11 November 2010