BT 2014 Annual Report Download - page 37

34 The Strategic Report
Delivering our strategy
Financial performance
Year ended 31 March
2014
£m
2013a
£m
2012a
£m
Revenue 7,041 7,170 7,812
 Underlying revenue excluding transit (1)% (6)% (1)%
Operating costs 6,109 6,338 6,977
EBITDA 932 832 835
Depreciation and amortisation 606 625 701
Operating prot326 207 134
Capital expenditure 495 524 560
Operating cash ow 389 212 391
a 5estated, see note 1 to the consolidated Ƭnancial statements.
Revenue decreased 2% (201213 8%). We had an £8m negative
impact from foreign exchange movements and a £40m decline in transit
revenue. Our key revenue measure, underlying revenue excluding transit,
decreased 1% (201213 6%), an improvement on last year.
Our UK revenue declined 5% (201213 8%) reecting lower public
sector business. In part this reects our focus on only pursuing business
in this sector that generates economic value. Underlying revenue
excluding transit in Continental Europe was at while in the US and
Canada the decline slowed to 1%. We generated double-digit growth in
underlying revenue excluding transit in our high-growth regions.
Operating costs decreased 4% (201213 9%). Underlying operating
costs excluding transit decreased 3% (201213 11%) reecting the
benet of our cost transformation programmes.
EBITDA improved 12% (201213 at) and increased 14% on an
underlying basis. Depreciation and amortisation decreased 3%
(201213 11%) as a result of lower capital expenditure in recent years.
Operating prot increased by £119m to £326m.
Capital expenditure decreased 6% (201213 6%). EBITDA less capital
expenditure increased by £129m to £437m compared with an increase
of £33m to £308m in 201213.
Operating cash ow was an inow of £389m (201213 £212m).
The increase of £177m was due to EBITDA growth, around £60m of
early customer receipts and lower capital expenditure.
BT Global Services 12-month rolling operating cash Ʈow
(50)
0
50
100
150
200
250
300
350
400
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014
£m
Year ended 31 March
BT Business
BT Business serves around 900,000 UK SMEs.
It has a leading position in xed-voice, networking
and broadband services.
BT Business had ve customer-facing divisions during the year
UK SME, UK Corporate, BT Ireland, IT Services and BT Conferencing.
BT Conferencing moved into BT Global Services in April 2014.
UK SME
UK SME supplies small businesses in Great Britain (typically up to
50employees) with xed-voice, broadband, mobility, networking
and IT services.
It includes BT Redcare, BT Directories and BT Payphones. BT Redcare
sells re and security alarm signalling services, surveillance networks
and control room services. BT Directories provides Directory Enquiries,
The Phone Book, operator services and call handling for the emergency
services. BT Payphones provides public, private and managed payphone
services.
UK Corporate
UK Corporate supplies larger businesses in Great Britain (typically
50-1,000 employees) with xed-voice, broadband, mobility,
networking and IT services.
It includes BT Fleet, one of the UKs leading eet management providers.
BT Ireland
In Northern Ireland, we are the leading service provider for SMEs and
thepublic sector. We run the copper access network and have built a
bre broadband network that passes more than 90% of premises.
In the Republic of Ireland, we serve corporate and public sector
customers and are one of the countrys largest providers of wholesale
network services.
IT Services
We have ve specialist IT services businesses
BT iNet A networked IT specialist and leading Cisco
partner selling infrastructure, security and
unied communications.
BT Engage IT A leading provider of business-to-business
IT equipment and services.
BT Business Direct An online store providing IT and
communications hardware and software,
including computing and networking
equipment.
BT Expedite A provider of services to the retail sector.
BT Tikit A provider of IT products and services for
legal and accountancy rms.