BT 2014 Annual Report Download - page 33

30 The Strategic Report
Delivering our strategy
Our lines of business
Our business is built around our customers
 serving their needs and delivering value
to them.
How we are organised
We have ve customer-facing Iines of business
BT Global Services, BT Business, BT Consumer,
BTWholesale and Openreach. They are supported
by our internal service unit, BT Technology,
Service  Operations.
BT
Business
BT Technology, Service & Operations
BT
Wholesale
OpenreachBT Global
Services
BT
Consumer
During the year, we separated BT Retail into two new lines of business
BT Business and BT Consumer. We did this to allow us to better serve
our SME and consumer customers and to better deliver against our
strategic priorities.
BT Retail previously comprised four sub units. These were Consumer,
Business, BT Enterprises and BT Ireland. BT Enterprises (with the
exception of BT Wi-) and the business and wholesale elements of
BT Ireland merged with Business to form the new BT Business line of
business. Consumer, BT Wi- and the consumer part of BT Ireland have
become BT Consumer.
BT Global Services is our largest line of business by revenue, generating
39% of the groups external revenue. BT Consumer is the next largest,
contributing 22%. This has increased slightly from last year as a result
of its revenue growth in the year.
Around 60% of Openreachs revenue is generated from other BT lines of
business so its contribution to external group revenue is the smallest, at
10%. Total Openreach revenue is equivalent to 28% of group revenue.
It is the groups largest EBITDA contributor, generating 43% of the total,
reecting its extensive network assets.
BT Global Services EBITDA margins are below that of the other lines of
business. At 15%, its proportion of group EBITDA is therefore below its
overall revenue contribution.
10%
Openreach
External revenue by line of business
28%
Openreach
(including internal)
13%
BT Wholesale
22%
BT Consumer
16%
BT Business
39%
BT Global Services
Year ended 31 March 2014
Adjusted EBITDA by line of businessa
15%
BT Global Services
18%
BT Business
14%
BT Consumer
43%
Openreach
10%
BT Wholesale
Year ended 31 March 2014
ª Before speciƬc items.
Changes to our organisational structure
Eective from 1 April 2013, we made a number of changes that simplify
our internal trading and more closely align our line of business results
with our regulatory accounts. Comparative nancial results for each line
of business for 201213 and 201112 have been restated to be on a
consistent basis throughout this Annual Report. There was no impact on
the group results from these changes. See page 127 for further details.
There have been some changes to our organisational structure since the
year-end. BT Security moved from our central group functions into BT
Global Services in April 2014. This business is in charge of protecting our
own and customers data and assets. We believe that it dierentiates
the services we can oer and will help us win in the market and take full
advantage of global opportunities.
Also in April 2014, BT Conferencing moved from BT Business into BT
Global Services. This will help us simplify the way we provide integrated
collaboration solutions to our global customers.