.
-Revenue1 of £5,122m, down 3%, or 6% excluding foreign exchange movements and acquisitions
-Adjusted EBITDA1 of £1,436m, up 2% reflecting progress in all lines of business
-Continued improvement in BT Global Services with adjusted EBITDA1 of £95m, up 53% on the first quarter
-Adjusted earnings per share1 of 4.5p, down 8%, reported earnings per share of 5.5p, up 12%
-Free cash flow of £705m, up £336m including a tax repayment and associated interest of £226m
-Net debt4 reduced to £9.9bn
-Total underlying costs2 down £932m in the half year
-Interim dividend of 2.3p per share
Ian Livingston, Chief Executive, commenting on the results, said:
"We have had another quarter of progress but there remains a lot more to do. With total cost2 reductions of over £900m in the first half, we have made significant headway towards our previous target of well over £1bn for the full year. We now expect to generate at least £1.6bn of free cash flow3 this year, compared with our previous target of over £1bn.
"We are investing in the future of the business with an enhanced and accelerated programme of fibre deployment and wider roll out of faster broadband speeds, all within our capital expenditure plans.
"Given our operational performance, we expect to increase dividends by around 5% for the full year. The Board is declaring an interim dividend of 2.3p per share."
1 Before specific items, leaver costs and net interest on pensions.
2 Underlying operating costs and capital expenditure.
3 Before gross pension deficit payments of £525m, but after cash costs of BT Global Services restructuring.
4 Net debt is defined in Note 12.
Forwardlooking statements - caution advised
Certain statements in this results release are forwardlooking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning: revenue, capital expenditure and total operating cost reductions, free cash flow and net debt; EBITDA; increased dividends; progress in Global Services delivery of cost savings; enhanced rollout of fibre and superfast broadband; and the group's liquidity and funding position.
Although BT believes that the expectations reflected in these forwardlooking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forwardlooking statements.
Factors that could cause differences between actual results and those implied by the forwardlooking statements include, but are not limited to: material adverse changes in economic conditions in the markets served by BT; future regulatory actions and conditions in BT's operating areas, including competition from others; selection by BT and its lines of business of the appropriate trading and marketing models for its products and services; fluctuations in foreign currency exchange rates and interest rates; technological innovations, including the cost of developing new products, networks and solutions and the need to increase expenditures for improving the quality of service; prolonged adverse weather conditions resulting in a material increase in overtime, staff or other costs; developments in the convergence of technologies; the anticipated benefits and advantages of new technologies, products and services not being realised; the underlying assumptions and estimates made in respect of major customer contracts proving unreliable; the aims of the BT Global Services' revised operating model and restructuring plan not being achieved; completion of the pension fund actuarial valuation; and general financial market conditions affecting BT's performance and ability to raise finance. BT undertakes no obligation to update any forwardlooking statements whether as a result of new information, future events or otherwise.
-Revenue1 of £5,122m, down 3%, or 6% excluding foreign exchange movements and acquisitions
-Adjusted EBITDA1 of £1,436m, up 2% reflecting progress in all lines of business
-Continued improvement in BT Global Services with adjusted EBITDA1 of £95m, up 53% on the first quarter
-Adjusted earnings per share1 of 4.5p, down 8%, reported earnings per share of 5.5p, up 12%
-Free cash flow of £705m, up £336m including a tax repayment and associated interest of £226m
-Net debt4 reduced to £9.9bn
-Total underlying costs2 down £932m in the half year
-Interim dividend of 2.3p per share
Ian Livingston, Chief Executive, commenting on the results, said:
"We have had another quarter of progress but there remains a lot more to do. With total cost2 reductions of over £900m in the first half, we have made significant headway towards our previous target of well over £1bn for the full year. We now expect to generate at least £1.6bn of free cash flow3 this year, compared with our previous target of over £1bn.
"We are investing in the future of the business with an enhanced and accelerated programme of fibre deployment and wider roll out of faster broadband speeds, all within our capital expenditure plans.
"Given our operational performance, we expect to increase dividends by around 5% for the full year. The Board is declaring an interim dividend of 2.3p per share."
1 Before specific items, leaver costs and net interest on pensions.
2 Underlying operating costs and capital expenditure.
3 Before gross pension deficit payments of £525m, but after cash costs of BT Global Services restructuring.
4 Net debt is defined in Note 12.
Forwardlooking statements - caution advised
Certain statements in this results release are forwardlooking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning: revenue, capital expenditure and total operating cost reductions, free cash flow and net debt; EBITDA; increased dividends; progress in Global Services delivery of cost savings; enhanced rollout of fibre and superfast broadband; and the group's liquidity and funding position.
Although BT believes that the expectations reflected in these forwardlooking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forwardlooking statements.
Factors that could cause differences between actual results and those implied by the forwardlooking statements include, but are not limited to: material adverse changes in economic conditions in the markets served by BT; future regulatory actions and conditions in BT's operating areas, including competition from others; selection by BT and its lines of business of the appropriate trading and marketing models for its products and services; fluctuations in foreign currency exchange rates and interest rates; technological innovations, including the cost of developing new products, networks and solutions and the need to increase expenditures for improving the quality of service; prolonged adverse weather conditions resulting in a material increase in overtime, staff or other costs; developments in the convergence of technologies; the anticipated benefits and advantages of new technologies, products and services not being realised; the underlying assumptions and estimates made in respect of major customer contracts proving unreliable; the aims of the BT Global Services' revised operating model and restructuring plan not being achieved; completion of the pension fund actuarial valuation; and general financial market conditions affecting BT's performance and ability to raise finance. BT undertakes no obligation to update any forwardlooking statements whether as a result of new information, future events or otherwise.
