BT 2016 Annual Report Download - page 185

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Overview The Strategic Report Governance Financial statements Additional information
10. Earnings per share
Basic earnings per share is calculated by dividing the profit after tax attributable to equity shareholders by the weighted average number
of shares in issue after deducting the own shares held by employee share ownership trusts and treasury shares.
In calculating the diluted earnings per share, share options outstanding and other potential shares have been taken into account where
the impact of these is dilutive. Options over 15m shares (2014/15: 13m shares, 2013/14: 24m shares) were excluded from the
calculation of the total diluted number of shares as the impact of these is antidilutive.
Year ended 31 March 2016 2015 2014
Basic weighted average number of shares (millions) 8,619 8,056 7,857
Dilutive shares from share options (millions) 58 80 314
Dilutive shares from executive share awards (millions) 37 55 60
Diluted weighted average number of shares (millions) 8,714 8,191 8,231
Basic earnings per share 29.9p 26.5p 25.7p
Diluted earnings per share 29.6p 26.1p 24.5p
The earnings per share calculations are based on profit after tax attributable to equity shareholders of the parent company which excludes
non-controlling interests. Profit after tax attributable to equity shareholders of the parent company was £2,581m (2014/15: £2,135m,
2013/14: £2,016m) and profit after tax attributable to non-controlling interests was £7m (2014/15: £nil, 2013/14: £2m). Profit
attributable to non-controlling interests is not presented separately in the financial statements as it is not material.
As a result of the acquisition of EE our earnings per share ratio improved despite the 7% increase in the weighted average number of
shares.
The group also measures financial performance based on adjusted earnings per share, which excludes specific items. Adjusted earnings per
share and a reconciliation to basic earnings per share is disclosed on page 241.
11. Dividends 2016 2015 2014
Year ended 31 March
pence
per share £m
pence
per share £m
pence
per share £m
Final dividend in respect of the prior year 8.5 710 7.5 609 6.5 512
Interim dividend in respect of the current year 4.4 368 3.9 316 3.4 269
12.9 1,078 11.4 925 9.9 781
The Board recommends that a final dividend in respect of the year ended 31 March 2016 of 9.6p per share will be paid to shareholders
on 5September 2016, taking the full year proposed dividend in respect of 2015/16 to 14.0p (2014/15: 12.4p, 2013/14: 10.9p)
which amounts to approximately £1,324m (2014/15: £1,028m, 2013/14: £880m). This dividend is subject to approval by
shareholders at the Annual General Meeting and therefore the liability of approximately £956m (2014/15: £712m, 2013/14: £611m)
has not been included in these financial statements. The proposed dividend will be payable to all shareholders on the Register of Members
on 12 August 2016.
The value of £1,078m (2014/15: £925m, 2013/14: £781m) for the final and interim dividends is disclosed in the group statement
of changes in equity. This value may differ from the amount shown for equity dividends paid in the group cash flow statement, which
represents the actual cash paid in relation to dividend cheques that have been presented over the course of the financial year.