BT 2003 Annual Report Download - page 87

2. Segmental analysis
The group provides telecommunication services, principally in the UK and essentially operates as a unitary
business. Its main services and products are fixed voice and data calls, the provision of fixed exchange lines
to homes and businesses, the provision of communication services to other operators, the provision of private
services to businesses and the supply of telecommunication equipment for customers’ premises.
The turnover of each line of business is derived as follows:
&BT Retail derives its turnover from the supply of exchange lines and from the calls made over these lines,
the leasing of private circuits and other private services, the sale and rental of customer premises equipment
to the group’s UK customers and other lines of business and from its narrowband and broadband internet
access products.
&BT Wholesale derives its turnover from providing network services to BT Retail and other BT lines of business,
and from interconnecting the group’s UK network to other operators.
&BT Global Services (formerly BT Ignite) mainly generates its turnover from outsourcing and systems
integration work and from the fixed network operations of the group’s European subsidiaries. The business
also derives revenues from providing web hosting facilities to end customers and through BT lines of business.
Segmented information on the lines of business is given below for the years ended 31 March 2003, 31 March
2002 and 31 March 2001 as required by the UK accounting standard SSAP 25 and the US accounting standard
SFAS No. 131 (SFAS 131).
There is extensive trading between the lines of business and profitability is dependent on the transfer price
levels. These intra-group trading arrangements and operating assets have been subject to review and have
changed in certain instances. In addition, the group moved management responsibility of BT Openworld to
BT Retail. Comparative figures have been restated for these and other changes and in certain instances have
been determined using apportionments and allocations.
Turnover Depreciation
and
amortisation
Operating
profit (loss) of
associates
and joint
ventures
Total
operating
profit (loss)External Internal
Group
total
Year ended 31 March 2003 £m £m £m £m £m £m
BT Retail 11,333 1,968 13,301 210 (3) 1,421
BT Wholesale 3,472 7,788 11,260 1,923 (1) 1,923
BT Global Services 3,882 1,369 5,251 624 180 (266)
Other 40 1 41 278 153 (177)
Intra-group – (11,126) (11,126) – – –
Group totals 18,727 – 18,727 3,035 329 2,901
Turnover Depreciation
and
amortisation
Operating
profit (loss) of
associates
and joint
ventures
Total
operating
profit (loss)External Internal
Group
total
Year ended 31 March 2002 £m £m £m £m £m £m
BT Retail 10,724 2,087 12,811 255 (6) 866
BT Wholesale 3,700 8,556 12,256 1,914 – 2,163
BT Global Services 3,635 837 4,472 2,828 144 (2,540)
Concert ––––(1,123) (1,123)
Other 58 12 70 348 (458) (855)
Intra-group – (11,162) (11,162) – – –
Total continuing activities 18,117 330 18,447 5,345 (1,443) (1,489)
mmO
2
2,273 392 2,665 648 5 (461)
Other 169 2 171 8 57 90
Intra-group – (724) (724) – – –
Total discontinued activities 2,442 (330) 2,112 656 62 (371)
Group totals 20,559 – 20,559 6,001 (1,381) (1,860)
Notes to the financial statements
86 BT Annual Report and Form 20-F 2003