BT 2016 Annual Report Download - page 175

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181
Overview The Strategic Report Governance Financial statements Additional information
4. Segment information
The definition of the group’s operating and reportable segments is provided on page 175.
EE was acquired on 29 January 2016 and up to 31 March 2016 has been reported as a separate line of business to the
Operating
Committee
. It is therefore a reportable segment. EE had trading with other lines of business within the group which has become internal
trade since acquisition, and is therefore eliminated on consolidation. We have set out below information regarding the results of each
reportable segment including a reconciliation of the 2015/16 consolidated results to our results excluding EE, to enable us to show how
we performed compared to our outlook.
Segment revenue and profit
Reconciliation of BT consolidated
to BT excluding EE
Year ended 31 March
2016
BT Global
Services
£m
BT
Business
£m
BT
Consumer
£m
EE
£m
BT
d Wholesale
£m
Openreach
£m
Other
£m
Total
£m
Removal
of EE
contribution
£m
Add back
elimination
of BT
internal
trade with
EE
£m
Total
excluding
e EE
£m
Segment revenue 6,530 3,130 4,598 1,055 2,086 5,100 75 22,574 (1,055) –21,519
Internal revenue (29) (377) (65) (17) (68) (3,058) (51) (3,665) 17 69 (3,579)
Revenue from external
customersa6,501 2,753 4,533 1,038 2,018 2,042 24 18,909 (1,038) 69 17,940
EBITDAb1,048 1,076 1,037 261 542 2,664 (48) 6,580 (261) –6,319
Depreciation and
amortisation (518) (198) (206) (176) (212) (1,301) (19) (2,630) 176 –(2,454)
Operating profit (loss)a530 878 831 85 330 1,363 (67) 3,950 (85) –3,865
Specific items (note 8) (215)
Operating profit (loss) 3,735
Net finance expensec (712)
Share of post tax profit of associates and joint ventures 6
Profit before tax 3,029
a Before specific items.
b EBITDA is stated before specific items and is a non-GAAP measure provided in addition to the disclosure requirements defined under IFRS. Our rationale for using non-GAAP measures is explained on
pages240 to 242.
c Net finance expense includes specific item expense of £229m (2014/15: £299m, 2013/14: £235m). See note 8.
d EE reflects results for the period from acquisition on 29 January to 31 March 2016.
e On acquisition transactions between EE and other BT lines of business have become internal. BT Wholesale and BT Business had £68m and £1m of internal revenue with EE respectively. EE had a total of
£17m of internal revenue with BT Business, BT Consumer and BT Wholesale.