BT 2015 Annual Report Download - page 65

63
Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business
Group performance Governance Financial statements Additional information
UK   orporate data and networin revenue increased 
011 1 with continued rowth in our networin products
includin fibre broadband.
 reland underlin revenue ecludin transit increased 
011 1 driven b software sales and fibre broadband.
 services revenue declined 1 011 up  with a decrease
in lower arin hardware sales as we continue to focus our strate
towards providin hiher-arin anaed services.
peratin costs decreased  011 . Underlin operatin
costs ecludin transit decreased  011  reectin the
ipact of our cost transforation proraes.
 increased  011 . cludin forein echane
oveents underlin  was also up  011 .
epreciation and aortisation decreased 9 011 1 as a
result of lower capital ependiture in recent ears. peratin profit
increased  011 1.
apital ependiture increased b 0 011 1 decrease
aswe replaced a nuber of  leet vehicles to support penreach.
peratin cashow was an inow of  011 99.
his was hiher than last ear driven b the rowth in  and
the tiin of worin capital oveents which oset the hiher
capitalependiture.
Key priorities
ur future plans include
 developin our portfolio to add new convered services
enhanceents to our o products and ore  service capabilities
 drivin sales of hosted o convered fied-obile services and
fibre broadband services to attract new custoers and reduce losses
tocopetitors
 developin ore bundles and interated solutions to increase
cross-sellin helped b iproveents in our sstes and sales
oranisations
 iprovin our anaed services capabilities to help us win ore aor
deals and
 transforin custoer service to ive custoers a better eperience
and dierentiate ourselves fro copetitors.
Transform our costs
peratin costs were down . Underlin operatin costs ecludin
transit were down  due to savins fro our cost transforation
activities. he ain reason for the lower costs is a 10 reduction in
our total labour resource. oe of this resulted fro the creation of
usiness last ear with benefits owin throuh to this ear.
e have also reduced our headcount throuh specific initiatives.
oreaple we have reduced the nuber of operational sites across 
usiness. nd we ered  iet and  nae  which eliinated
soe duplicated activities.
e have also continued to ae savins b reneotiatin supplier
contracts.
nvest for rowth
e have continued to invest in our product portfolio with o a e
focus for us.  ne hone  loud oice and  loud hone were
alllaunched in the ear.
 iit launched arpe ie obile a obile tie-recordin
application aied at the leal profession.
n orthern reland we have copleted the first three phases of the
-funded orthern reland roadband proveent roect.
e are continuin to invest further. e have iproved the speed reach
and ualit of broadband services in an rural areas b investin in
both copper and fibre infrastructure. n the epublic of reland we have
continued to invest in networ infrastructure for business and wholesale
custoers includin national fibre bachaul and cloud services.
e have replaced a lare nuber of vehicles in  leet. his will iprove
reliabilit reduce aintenance costs and deliver reater fuel ecienc.
e have also purchased a nuber of ore environentall-friendl
electric vehicles ainl to support penreach.
e have invested in iprovin our internal  sstes. he larest
investent was in our UK usiness olution sste entioned above.
e will continue to invest in it net ear and irate ore custoers
and products onto it.
Financial performance
ear ended 1 arch
2015

01a

01a

evenue 1 1 0
 Underlin revenue ecludin transit 1 1 
Operating costs 10 11 0
 101 100 90
Depreciation and amortisation 10 19 
peratin profit 1 0 0
apital ependiture 1 1 1
peratin cash ow  99 1
a5HVWDWHGVHHQRWHVDQGWRWKHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
evenue declined  011 at includin a  neative
ipact fro forein echane oveents arisin fro our business in
the epublic of reland. Underlin revenue ecludin transit decreased
1 011 1.
UK   orporate voice revenue declined  011 .
hisreects the onoin reduction in business call and line volues
ascustoers ove to data and o services. e have responded to
thisshift throuh the launch of  ne hone  loud oice and 
loud hone this ear.