BT 2015 Annual Report Download - page 80

78 BT Group plc
Annual Report 2015
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his ear we have aain delivered  and free cash ow rowth.
Underlin revenue ecludin transit was down 0. broadl level with
last ear as the stron rowth in  onsuer was oset b the ipact
of challenin arets and reulator pricin pressures. ur results
werein line with or ahead of the outloo that we announced at the
startof the ear.
ur balance sheet reains stron and has enabled us to ae soe e
oves in the aret this ear with our planned acuisition of  and
securin further eclusive sports content in our  onsuer business.
e areed the triennial valuation of the  ension chee ivin
certaint to the reuired deficit paents for the followin three ears.
ver the past si ears we have reduced our operatin costs and capital
ependiture in areate b around .bn. his ear we continued
the ood proress alread ade in transforin our costs. n  lobal
ervices we replicated the forensic approach applied in the UK to the
international business and across the lines of business we increased
productivit while reallocatin our labour resource to be ore ecient.
his contributed to rowth in adusted  of  to .bn.
dusted profit before ta was .bn up 1 and adusted  of
1.p was also up 1. he benefit of our focus in recent ears on
capital ependiture eciencies and debt reduction have owed throuh
to these etrics.
oralised free cash ow was up 0 at 0 ahead of our
outloo for the ear of above .bn. tron cash eneration across the
roup has enabled us to invest in our five strateic rowth areas.
ur capital ependiture was .bn. e have now passed ore than
 preises with our superfast fibre broadband networ over
three-uarters of the UK. his includes preises within UK areas as
we continue to ae proress with etendin the reach of fibre beond
ourcoercial footprint.
Group Finance Director’s introduction
Outlook for 2015/16
e continue to epect rowth in underlin revenue ecludin transit in
011. e epect odest rowth in adusted . his is despite
a year-on-year impact of around 10 due to lower incoe fro both
ladder pricin and the sale of redundant copper a hiher pensions operatin
chare and hiher leaver costs. e will also incur costs relatin to the launch
of our U hapions eaue and U uropa eaue content in the ear.
e epect noralised free cash ow to be around .bn. his copares
with 0 in 011 and is despite an increase of around 90 in
ordinar pension contributions. e are ain no chane to our epected
dividend and share bubac outloo.
Outlook Result
Underlying revenue
excluding transitaroadl level own 0.
Adjusted EBITDAb.bn.bn .bn
1RUPDOLVHGIUHHFDVKƮRZbbove .bn .bn
Dividend per share Up 101 Up 1
Share buyback programme c00 0
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2014/15 performance against our outlook
“ This year we’ve made some key investment
decisions. We’ve been able to do that because
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Underlying revenue excluding transitarowth
Adjusted EBITDAbodest rowth
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Dividend per share Up 101
Share buyback c00
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Outlook for 2015/16
n ebruar we announced our proposed acuisition of  fro eutsche
eleo and rane. he interation of  with  will accelerate our
obilit strate and increase our capacit for future investent and
product innovation and is an ecitin prospect.
ur financial obectives are to reduce net debt while investin in the
business supportin the pension fund and pain proressive dividends.
t reains essential that we sta focused on our core business while we
ove into new areas.  epect the coin ear to be both ecitin and
rewardin for our business. e have laid the foundations that position
uswell for rowth.
Tony Chanmugam
Group Finance Director
 a 01