Gavin Patterson, Chief Executive, commenting on the trading update,
said
“We’ve made a good start to the year. We are making
positive progress against our strategy. Our customer experience
metrics continue to improve and we have seen the successful launch
of new converged products including BT Plus, our first Consumer
converged offering and 4G Assure, for business customers.
Initiatives to transform our operating model have seen a gross
reduction in c.900 roles across the Group and improved cost
performance.
“EE continues to maintain its network leadership and will
switch on the UK’s first live 5G network trial in October.
Openreach continues its FTTP network deployment and is currently
building to c.10,000 premises per week. New Openreach wholesale
pricing will incentivise communications providers to encourage more
of their customers onto better services and ultimately move the
vast majority of Britain’s homes and businesses onto
superfast and ultrafast platforms. We welcome the initial outcome
of DCMS’ Future Telecoms Infrastructure Review and
Ofcom’s approach to future regulation and look forward to
further engagement with all our key stakeholders to ensure greater
clarity, certainty and support as we look to realise our broader
investment ambitions.
“Our outlook for the year remains
unchanged.”
|
|
|||||
First quarter to 30 June
|
|
2018
(IFRS 15)
|
2017
(IFRS
15 pro forma unaudited)
|
2017
(IAS
18)
|
Change4
|
|
|
|
£m
|
£m
|
£m
|
%
|
|
Reported
measures
|
|
|
|
|
|
|
Revenue
|
|
5,715
|
|
5,837
|
n/m
|
|
Profit
before tax
|
|
704
|
|
418
|
n/m
|
|
Profit
after tax
|
|
549
|
|
285
|
n/m
|
|
|
|
|
|
|
||
Adjusted
measures
|
|
|
|
|
||
Adjusted
revenue
|
5,716
|
5,835
|
5,849
|
(2)
|
||
Change
in underlying3 revenue
|
|
|
|
(2)
|
||
Adjusted3
EBITDA
|
|
1,800
|
1,785
|
1,785
|
1
|
|
Adjusted3
profit before tax
|
|
816
|
791
|
791
|
3
|
|
Capital
expenditure
|
|
839
|
835
|
835
|
-
|
|
Normalised
free cash flow3
|
507
|
556
|
556
|
£(49)m
|
||
Net
debt3
|
|
11,227
|
8,810
|
8,810
|
£2,417m
|
|
Adjusted1
revenue
|
Adjusted1
EBITDA
|
||||
First
quarter to 30 June
|
2018
|
20172
|
Change
|
2018
|
20172
|
Change
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Consumer
|
2,591
|
2,540
|
2
|
610
|
556
|
10
|
Business and Public
Sector
|
1,085
|
1,132
|
(4)
|
350
|
342
|
2
|
Wholesale and
Ventures
|
459
|
497
|
(8)
|
154
|
174
|
(11)
|
Global
Services
|
1,147
|
1,246
|
(8)
|
95
|
73
|
30
|
Openreach
|
1,217
|
1,248
|
(2)
|
567
|
621
|
(9)
|
Other
|
1
|
2
|
n/m
|
24
|
19
|
26
|
Intra-group
eliminations
|
(784)
|
(830)
|
6
|
-
|
-
|
-
|
Total
|
5,716
|
5,835
|
(2)
|
1,800
|
1,785
|
1
|
2018/19
|
|
Change
in underlying1 revenue (IFRS 15
basis)
|
Down
c.2%
|
Adjusted1
EBITDA (IFRS 15 basis)
|
£7.3bn -
£7.4bn
|
Normalised
free cash flow1
|
£2.3bn -
£2.5bn
|
Capital
expenditure2
|
c.£3.7bn
|
Press office:
|
|
Tom
Engel
|
Tel:
020 7356 5369
|
|
|
Investor relations:
|
|
Mark
Lidiard
|
Tel:
020 7356 4909
|
Adjusted
|
Before
specific items
|
Net debt
|
Loans
and other borrowings (both current and non-current), less current
asset investments and cash and cash equivalents. Currency
denominated balances within net debt are translated to Sterling at
swapped rates where hedged
|
Normalised free cash flow
|
Free
cash flow before specific items and the cash tax benefit of pension
deficit payments
|
Specific items
|
Items
that in management’s judgement need to be disclosed
separately by virtue of their size, nature or incidence. Further
information is provided in note 1 on page 9
|
Underlying
|
Excludes
specific items, foreign exchange movements and the effect of
acquisitions and disposals. Further information is provided in note
2 on page 9
|