BT 1997 Annual Report Download - page 2

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2
Chairman’s
statement
1996/97 was the most
significant year for BT since its
privatisation some 12 years
ago. It was the year in which
BT and MCI made history by
announcing our intention to
merge and form Concert, a
leading player in the global
telecommunications industry
of the future.
A great deal has to happen between
the announcement of a proposed
merger and eventual closure. But
we have already safely passed a
number of key milestones. The
merger has received overwhelming
shareholder approval on both sides
of the Atlantic and we have made
good progress towards the
necessary regulatory clearances.
BT and MCI, between us, have
driven many of the dramatic
changes that have taken place
in our industry over the last
decade. We are now seizing the
chance to build one of the first
great companies of the twenty-
first century.
In my remarks at the Extraordinary
General Meeting held in April,
I described the merger as a “rite of
passage” for BT – on the journey
from nationalised monopoly to
leading global competitor. In some
of the press coverage this was
reported as a “right of passage”
and, as so often happens, such a
slip revealed a new truth.
Concert is indeed a “right of
passage” for your company, in the
sense that it is something that we
have earned.
If BT had not become so customer-
focused, so responsive to
competition, innovative, and
committed to quality, we would
simply not have been in a position
to make this merger work. The fact
that we are is a splendid testimony
to the BT people who have
reshaped this company over the
last decade, and to the enlightened
policies of privatisation, liberalisation
and rigorous regulation pursued by
the outgoing UK Government.
We have yet to see how the policies
of the incoming Government will
develop. But I am encouraged by
its clear enthusiasm for the benefits
that information technology
can bring.
Things have not stood still while
merger talks were in progress, and
your company has had a most
satisfactory year. Turnover grew by
3.4 per cent, helped by innovative
and successful marketing and by
growth in the demand for advanced
services, such as FeatureNet and
high-speed ISDN connections.
Our reputation as a company that
offers excellent value for money
was further enhanced by price
reductions on a range of call types
and other services worth a total of
over £800 million in the year.
Earnings per share increased to
32.8p and I am pleased to report a
final dividend for the year of 11.95p
per share. This will be paid at the
same time as the 35p per share
special dividend, which was
announced in connection with the
merger and which brings the total
dividend for the year to 54.85p.
Excluding the special dividend,
this represents an increase of
6.1 per cent on last year.