BT 2015 Annual Report Download - page 85

83
Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business Group performance
Governance Financial statements Additional information
aents to telecounications operators s were down 1
priaril reectin lower transit volues a neative forein echane
oveent and lower call volues in  onsuer. et labour costs were
down  as we increased productivit while reallocatin our labour
resource to be ore ecient. otal labour costs includin capitalised
labour were down b less at  as a result of usin ore indirect labour
in capital proects priaril in penreach due to the UK prorae.
 port prorae rihts chares were 0 011 0
up  reectin a full 1 onths of sports rihts chares. ropert
and ener costs were 1 hiher while other operatin costs were down
1. ther operatin costs include sales of redundant copper which
enerated net incoe of 9 and we epect no benefit fro this
in011.
2014/15 operating costsa
36%
Net labour costs
19%
8%
POLOs
29%
Other
a ([FOXGLQJGHSUHFLDWLRQDPRUWLVDWRQDQGVSHFLƬFLWHPV
3%
Property & energy
Programme
rights charges
5%
Network & IT
ou can see a detailed breadown of our operatin costs in note  to the
consolidated financial stateents.
6SHFLƬFLWHPV
s we have said on pae  our coentar in this perforance review
focuses on the results before specific ites as this is how anaeent
easures the onoin perforance of the business.
pecific ites resulted in a net chare after ta of 0 011
19.
e reconised revenue and  of 1 bein the prior ear
ipacts of ladder pricin areeents with the UK obile operators
followin the upree ourt udent in ul 01.
pecific ites chared aainst operatin costs include 1
011  relatin to the roup-wide restructurin
prorae that started in 011. hese costs priaril relate to
leavers and propert and networ rationalisation.
eulator udents on thernet product pricin in prior ears and an
assessent of certain other historical reulator atters led to a chare
of  in the ear.
e had a propert rationalisation net benefit of  bein a profit of
 on the disposal of a surplus buildin in ondon Kebride ouse
partl oset b a  increase in onerous lease provisions. e incurred
costs of  relatin to the proposed acuisition of . f these
19 have been reconised in operatin costs 10 were directl
related to the share placin we ade in ebruar 01 and so have
beenreconised in euit and  relate to financin costs.
et interest on pensions of 9 011  was chared as a
specific ite. he increase ainl reects the hiher deficit at 1 arch
01 of .0bn copared to the deficit of .9bn at 1 arch 01.
pecific ites also include a ta credit of 11 011 111
reectin the ta on specific ites chared within profit before ta.
heprior ear included a ta credit of 0 on the re-easureent
ofdeferred ta balances fro a rate of  to 0. here is no credit
this ear as the rate of ta for 011 is unchaned at 0.
ou can see details of all specific ites chared to the incoe stateent
in the last three ears in note  to the consolidated financial stateents.
3URƬWEHIRUHWD[
dusted profit before ta was up 1 at 1.
he increase in adusted profit before ta reects our 
perforance and our focus in recent ears on capital ependiture
eciencies and debt reduction which has resulted in lower depreciation
and aortisation and a lower net finance epense.
eported profit before ta which includes specific ites was up 1
to.
e discuss depreciation net finance epense and ta in later sections
ofthis perforance review.
Earnings per share
dusted earnins per share increased 1 to 1.p.
dusted earnins per share is one of our e perforance indicators
seepaes 0 and 1 and has increased 0 over the last two ears.
he raph below shows the drivers of the rise in adusted earnins per
share over this period.
2013
EBITDA
Depreciation &
amortisation
Other
Interest
2014
EBITDA
Interest
Depreciation &
amortisation
Other
2015
23
25
27
29
31
33
Adjusted earnings per share
Year ended 31 March
26.3
0.3
1.9
0.5
0.4
28.2
2.0
2.0
31.5
0.8
1.1
eported earnins per share which includes specific ites was .p
up .
ur earnins per share in future ears will be ipacted b share options
aturin and share awards vestin under our eploee share plans.
twill also be aected b the additional shares we intend to issue as
partof the planned acuisition of . ee pae 1 for ore details.
Our cost transformation
focus on page
23
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