BT 2012 Annual Report Download - page 114

Financial statements
Notes to the consolidated financial statements
4. Segment information continued
Segment revenue and profit continued
BT Global
ServicesdBT RetaildBT WholesaledOpenreachdOther Total
Year ended 31 March 2011 £m £m £m £m £m £m
Segment revenue 8,059 7,700 4,201 4,930 38 24,928
Internal revenue – (447) (979) (3,426) – (4,852)
Revenue from external customersa8,059 7,253 3,222 1,504 38 20,076
EBITDAb593 1,784 1,316 2,132 61 5,886
Depreciation and amortisation (734) (443) (619) (877) (306) (2,979)
Operating profit (loss)a(141) 1,341 697 1,255 (245) 2,907
Specific items (note 9) (329)
Operating profit 2,578
Net finance expensec(924)
Share of post tax profit of associates and joint ventures 21
Profit on disposal of interest in associate 42
Profit before tax 1,717
BT Global
ServicesdBT RetaildBT WholesaledOpenreachdOther Total
Year ended 31 March 2010 £m £m £m £m £m £m
Segment revenue 8,522 8,078 4,583 5,164 40 26,387
Internal revenue – (373) (1,226) (3,877) – (5,476)
Revenue from external customersa8,522 7,705 3,357 1,287 40 20,911
EBITDAb457 1,777 1,353 1,960 92 5,639
Depreciation and amortisation (815) (459) (680) (856) (229) (3,039)
Operating profit (loss)a(358) 1,318 673 1,104 (137) 2,600
Specific items (note 9) (477)
Operating profit 2,123
Net finance expensec(1,158)
Share of post tax profit of associates and joint ventures 54
Loss on disposal of interest in associate (12)
Profit before tax 1,007
aBefore specific items.
bEBITDA is stated before specific items and is a non-GAAP measure provided in addition to the disclosure requirements defined under IFRS. The rationale for using non-GAAP measures is explained
on pages 166 to 169.
cNet finance expense includes specific item income of £197m in 2012 (2011: £79m expense, 2010: £268m expense). See note 9.
dIn 2012 the group moved certain customer accounts between lines of business. Comparatives for 2011 and 2010 have been restated to be on a consistent basis. The impact on line of business results
in 2011 was to increase revenue in BT Global Services and Openreach by £12m and £45m, respectively (2010: £9m and £46m) and to decrease revenue in BT Retail and BT Wholesale by £49m and
£8m, respectively (2010: £46m and £9m). There is no impact on line of business EBITDA and there is no impact on total group results.
Internal revenue and costs
Intra group revenue generated from the sale of regulated products and services is based on market price. Intra group revenue from the sale of
other products and services is agreed between the relevant lines of business and therefore line of business profitability can be impacted by
transfer pricing levels. The majority of the internal trading relates to Openreach and arises on rentals, and any associated connection or migration
charges, of the UK access lines and other network products to the customer-facing lines of business, both directly, and also indirectly, through BT
Operate which is included within the ‘Other’ segment. Internal revenue arising in BT Retail relates primarily to BT Ireland and BT Enterprises.
Internal revenue arising in BT Wholesale relates to the sale of line cards and access electronic services to Openreach.
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