BT 2012 Annual Report Download - page 48

45
Performance
Customer service delivery
In our consumer customer service organisation we have focused on
making it easier for our customers to contact and get help from us.
The percentage of customers rating interactions with us as extremely
easy or very easy has grown by eight percentage points during the year
for our voice channels. In March 2012 our BT Care team won the UK
Customer Satisfaction Award from the Institute of Customer Service for
best use of social media and communication strategy. Over 60% of our
service interactions are now self-serve via our website and automated
telephone systems. Calls to our call centres have fallen by 13% and
complaints have fallen 16%.
We continue to keep track of our performance in key areas that are
important to customers, such as our success at resolving queries in one
contact. In 2012 we improved our performance on this measure for
consumers by a further eight percentage points.
In our business customer service organisation we focused on ‘One
Contact Resolution’ (OCR) aiming to resolve customers' issues in just one
contact. We have reduced repeat service calls overall by 12%, with the
best improvement in our broadband technical helpdesk organisation, for
which repeat calls were down 17%. OCR for repair of lines also improved
by 14 percentage points in the year. Complaints have significantly
reduced, and were down by 20%.
Financial performance
Year ended 31 March
2012
£m
2011a
£m
2010a
£m
Revenue 7,393 7,700 8,078
Net operating costs 5,563 5,916 6,301
EBITDA 1,830 1,784 1,777
Depreciation and amortisation 410 443 459
Operating profit 1,420 1,341 1,318
Capital expenditure 434 434 417
Operating cash flow 1,362 1,382 1,566
a Restated. See page 111.
In 2012 revenue decreased by 4% (2011: 5% decrease) as increased
consumer ARPU was offset by lower calls and lines revenue and lower IT
hardware sales in BT Business.
BT Consumer revenue declined by 5% (2011: 6% decline). The reduced
rate of decline was driven by growth in our broadband base, particularly
BT Infinity, and in BT Vision, which contributed to an increase in
consumer ARPU.
BT Business revenue declined by 5% (2011: 1% decline), impacted by
lower IT hardware sales reflecting market conditions and our decision
during 2012 to move away from low-margin IT hardware trade sales.
Business line loss was at its lowest level for four years.
BT Ireland revenue was broadly flat (2011: 3% decline) excluding the
impact of foreign exchange movements, benefiting from a number of
significant contractwins despite the challenging economic environment.
BT Enterprises revenue increased by 1% (2011: 2% decline) excluding
the impact of foreign exchange movements. BT Conferencing revenue
increased due to growth in conferencing minutes and BT Expedite &
Fresca increased sales to retailers. These increases were partially offset by
revenue declines in BT Payphones, BT Redcare and BT Directories.
Net operating costs decreased by 6% (2011: 6% decrease) reflecting
our cost transformation initiatives.
EBITDA increased by 3% (2011: broadly flat) and with depreciation and
amortisation decreasing by 7% (2011: 3% decrease) due to the lower
level of capital expenditure in recent years, operating profit increased by
6% (2011: 2% increase).
Capital expenditure was flat (2011: 4% increase). Operating cash flow
decreased by 1% (2011: 12% decrease).
BT Wholesale
2012 was a challenging year as we continued our
transformation from a traditional product-based
wholesale business to one focused on managed IP
services, entering adjacent markets such as IP voice
services as well as delivering long-term managed
services to our wholesale customers.
Key facts
Total order intake of around £750m
MNS revenue represents 27% of external revenue
Over 200 CP customers for global IP Exchange
MEAS available at more than 13,000 mobile
base station sites
Operating performance
Investing for the future
We now have more than 60 CPs taking our WBC fibre broadband
service. Our MEAS service is now available at more than 13,000 mobile
base station sites, an increase of around 3,800 in the year, reinforcing
our market-leading position.
Since its launch in 2011 our global IP Exchange platform continues to
grow rapidly and now has over 200 CP customers. IP voice minutes have
increased by around 80% in the year.
Cost transformation
Net operating costs reduced by 6% (2011: 5% reduction) but increased
by 3% (2011: 3% reduction) excluding transit costs. Reductions in total
labour costs and discretionary expenditure were offset by the impact of
changes in the product mix and network migration costs.
Line of business performance
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information