BT 2015 Annual Report Download - page 60

58 BT Group plc
Annual Report 2015
s a result of these iproveents we increased our iht irst
ie easure . this ear 011 0.. hile we saw an
iproveent in loalt aon our top lobal custoers overall
custoer loalt declined  to . proveents in custoers
lielihood to recoend  and their perception of  as a business
partner were oset b chanes in spendin patterns and a reater focus
on value for one aon soe of our custoers.
e tr to ae a positive dierence to the counities where we do
business. hrouh our onnectin frica proect and our wor with
international charit  hildrens illaes we launched a prorae
to develop a healthcare anaeent  sste. his will be deploed at
seven  edical entres in si frican countries in 011.
e are also helpin the United ations and etope in ierra eone to
tacle the bola crisis b uicl etendin satellite capabilit to iprove
counications.
Transform our costs
e reduced our underlin operatin costs ecludin transit b 
reectin the ipact of lower revenue as well as our cost transforation
proraes. e have driven costs down b applin best practice
fro other parts of the roup and b tain our forensic UK approach
overseas. n the ear we continued to
 optimise our operating model. e siplified our oranisational
structure in witerland and astern urope b rationalisin
anaeent laers. his will save  a ear and has reoved
process failures and iproved custoer service
 reduce failures in our processes. or eaple we have reduced the
lead ties for ceasin third-part access circuits that we no loner
need savin over 0 a ear
 transform and optimise our global network. e are buildin new
networ infrastructure that supports our core products increases
coverae and lowers the cost of lon distance access lines and
 improve third-party supplier value for money by negotiating better
coercial ters. e are also directl insourcin the deliver of soe
of our products and services.
nvest for rowth
e have continued to invest to enhance our lobal capabilities in line
with the plans we shared last ear. or eaple we have invested in our
global account management capabilities and made our products and
services ore eible and better at worin toether.
e have also invested in
 the high-growth regions. e have etended the reach and features of
our services. e launched new cloud-based unified counications
and collaboration services in  and added cloud-enabled data
centres in countries includin rentina olobia and outh frica
 our network.  buildin acceleration and securit features into
the networ we are increasin application perforance reducin
bandwidth costs and iprovin securit for our custoers. e
etended thernet onnect to ten new countries brinin the total to
0. e launched nternet onnect each to epand internet coverae
in ore than 190 countries and territories. nd we added ten new 
onnect points of presence os in countries includin celand and
alasia
 our core products and services. e added an innovative new
service to our  ontact portfolio which allows businesses to send
short personalised videos to their custoers. e introduced  ssure
hreat efence to help our custoers better identif and react to
sophisticated cber securit threats. e also ade  eete with
olb oice available in ore countries interated it with isco eb
and icrosoft nc and launched the olb onference hone
 LQGXVWU\VSHFLƬFVROXWLRQV. e launched  etri iouch a
new touchscreen device for financial arets. t allows traders to tap
into hundreds of applications aret data feeds and counications
services all delivered b the  adian loud. e also opened two
retail eperience showcases one in ew or and one in ilan and
 BT Advise. e have siplified our oers iproved our consultin
ethodoloies and are better at alinin our advisor services with
our products and industr sectors.
Financial performance
ear ended 1 arch
2015

01a

01a

evenue 9 9 9
 Underlin revenue ecludin transit  1 
et operatin costs   
 10 101 90
Depreciation and amortisation 19 1 
peratin profit   1
apital ependiture  1 
peratin cash ow 9 99 1
a5HVWDWHGVHHQRWHVDQGWRWKHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
evenue decreased  011  includin a 0 neative
ipact fro forein echane oveents and a 9 decline in transit
revenue. ur e revenue easure underlin revenue ecludin
transit decreased  011 1 priaril reectin lower UK
public sector revenue.
e enerated rowth in underlin revenue ecludin transit of 9
in the hih-rowth reions 011 1 reectin the sinin
of e deals and the benefit of newl-launched capabilities products
and services. ontinental urope enerated  rowth in underlin
revenue ecludin transit 011  decline reectin hiher
spendin bour eistin custoers.
UK revenue decreased 11 011  ainl reectin continued
declines in public sector tradin. Underlin revenue ecludin transit in
the U and anada declined  011 .
peratin costs decreased  011 . Underlin operatin
costs ecludin transit decreased  011  reectin the
ipact of lower revenue and our cost transforation proraes.
 increased 1 011 10 and was up  ecludin
forein echane oveents. epreciation and aortisation decreased
1 011  as a result of lower depreciation on some UK
public sector contracts and the ipact of soe assets becoming fully
depreciated. peratin profit increased b 10 or  011
109 or .