BT 2014 Annual Report Download - page 5

6Introduction 2hairmans introduction
This has been an important year for BT. Our investments are delivering
and contributed to a strong set of results.
Our investments
e have continued to invest in the longterm health of our business.
e have brought bre broadband in reach of more than m U
premises  around two thirds of the country. Our rollout is well ahead
of our original target and we are now rapidly expanding into rural areas
as part of the Broadband Delivery U (BDU) programme. Thanks to
our investment, the U now has the widest coverage of high-speed
broadband of the ve largest countries in estern Europe. Average
broadband speeds are almost  higher than they were a year ago.
Our bre investment will take many years to pay back. But it is the right
thing to do for our customers and for BT  and it will drive signicant
economic benets for the U.
e successfully launched BT port in the year. e are making premium
sports content widely available at signicantly lower prices than
previously provided in the market. ine months on from launch, we
have around m direct BT port customers and with our wholesale
deals, it is now in around m homes. BT port has driven strong
take-up of broadband, slowed customer loss and contributed to BT
onsumer delivering its best revenue growth in over ten years. e also
increased the range of non-sports content on BT T, which now has
m customers.
Our mobility plans are progressing well and give us a real opportunity
to expand the range of services we provide to customers. The
investments we are making in our IT services capabilities will also make
us more valuable to businesses in the U.
hile our customer service improved this year, it was not good
enough. This was partly because our resources were stretched by the
widespread ooding across the U and the strong demand for BT
port. e are making our networks more resilient, recruiting more
engineers and contact centre agents and investing to improve our
systems and processes. e need to deliver a step-change to provide a
superior service to all our customers.
Our global presence
A signicant proportion of our revenue is generated outside the U, mainly
from servicing large multinational businesses. BT lobal ervices has
consolidated its leadership position in the market for managed networked
IT services and grew its order book by . It has also reduced its cost base,
contributing to its cash ow increasing by over  in the year.
To best serve our multinational customers it is critical that we have fair
access to networks across the world. Other operators can use our networks
in the U on favourable terms. et in the U and some European countries
incumbents are allowed a distinct advantage in their home markets.
e have therefore worked with the European ommission to
genuinely complete the digital single market, and with the U Federal
ommunications ommission on improved access to the U market. e
are encouraged by progress over the last year in the EU-U TTI trade
talks which should deepen transatlantic economic integration and reduce
non-tari barriers. e will continue to lobby actively on these important
issues and hope to see further progress in the year ahead.
Our people
Our performance this year reects the hard work and commitment of
our people. Our engineers are of particular note, working tirelessly to
x faults caused by the widespread ooding in the year. Our people also
give back in other ways. They volunteered over 6, days of their
time to help over , charities across the globe. o I am pleased
that almost , beneted from employee share option plans in the
year and that over 2, stand to benet from similar plans during
2  a signicant reward for much-appreciated hard work.
The Board and governance
There have been a few changes to our Board and executive team. I am
delighted to welcome arren East, previously chief executive of A
oldings, who joined the Board on February and Iain onn of B, who
will join on  une 2. They both bring a wealth of experience. I would
also like to thank The Rt on atricia ewitt for the advice and service
she has given during her six years on the Board, from which she retired in
arch 2.
The most notable change, of course, was in our chief executive, after
Ian(now ord) ivingston was appointed to be inister of tate for Trade
and Investment. I would like to thank Ian for the signicant personal
contribution he made both to the development and the execution of
our strategy. e has been replaced by avin atterson, previously EO,
BT Retail. avin is a tting and experienced successor and leads a very
capable team. I have every condence that BT will make yet further
progress under his leadership.
Our shareholders
As a result of our strong performance this year, the Board is proposing a
nal dividend of .p, up . This gives a full year dividend of .p,
also up . e remain committed to paying progressive dividends to
our shareholders and expect dividends to grow by - for each of
the next two years.
Our goal is to deliver sustainable, protable revenue growth supported
by the investments we are making. e made notable progress towards
this goal in the year. I am condent BT will make further progress in the
period to come, delivering long-term value for our shareholders.
Sir Michael Rake
Chairman
 ay 2
hairmans introduction
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Sir Michael Rake
hairman