BT 2012 Annual Report Download - page 46

43
Performance
EBITDA increased by 6% (2011: 30%). Excluding disposals and foreign
exchange movements EBITDA increased by 7% reflecting the impact
of cost saving initiatives and improved operational performance.
Depreciation and amortisation decreased by 3% (2011: 10% decrease)
as a result of lower overall capital expenditure over the prior two
financial years. This contributed to an operating loss of £85m, an
improvement compared with the losses of £141m and £358m in 2011
and 2010, respectively.
Capital expenditure increased by 12% (2011: 17% decrease) due to
customer contract commitments, additional expenditure to support
the delivery of new contracts in EMEA and Latin America, as well as
continued network investment.
Operating cash was an inflow of £183m (2011: £119m inflow). This
was slightly below our target of around £200m for the year.
BT Retail
Despite the challenge of highly competitive markets,
we have increased our profits for seven consecutive
years. We have grown our broadband and TV services
and reduced line losses, while improving efficiency and
reducing customer complaints. However, the economy
has affected the SME market in particular. We remain
focused on reducing costs and have consistently
delivered reductions in our cost base by simplifying,
standardising and automating processes.
Key facts
54% share of broadband net additions
Consumer ARPU up to £343
BT Infinity customers over 550,000
BT Vision base of over 700,000
Improved consumer and business line loss trends
Operating performance
BT Consumer
In response to changing customer demand and strong competition over
the past year we have focused our marketing and retention activities
predominantly on ‘dual play’ bundled offers of calls and broadband,
and ‘triple play’ bundles of calls, broadband and TV. We have improved
the flexibility of our bundles by introducing a wider range of options for
voice calling plans, broadband speeds and usage limits and TV content.
More than 60% of our retail broadband customer base now has a
bundle of services and around 98% of new broadband orders are for
bundled products. The increasing popularity of bundles has contributed
to increased consumer ARPU which was £343 in the fourth quarter of
2012 as consumers take more products from us.
Q1 Q1 Q1
2010 2011 2012
Q2 Q2 Q2Q3 Q3 Q3Q4 Q4 Q4
200
260
240
220
280
300
320
340
360
£
Consumer average revenue per user (12 months rolling)
Quarterly consumer ARPU
290
296
301
309
314
317
322
326
330
335
337
343
Active consumer line loss was down 30% on last year. This has been
achieved through a combination of competitive bundled offers and
effective marketing and retention campaigns. Year-on-year line churn
has reduced with customers on bundles having lower churn than those
with calls only. Growth in call packages with inclusive unlimited calls has
slowed the decline in call minutes per line.
-250
-200
-150
-100
-50
0
Quarterly active consumer line loss
Active consumer line loss
2012
Q1 Q1Q2 Q2Q3 Q3
2011
Q4 Q4
-181
-219
-142
-123 -125
-117
-93
-130
000
In the broadband market, we added 589,000 retail broadband
customers in the year, representing 54% of the broadband net
additions of 1,083,000 and taking our retail customer base to around
6.3m, up 10%.
Line of business performance
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information