BT Announce Q4 and Year End Preliminary Results

Incumbent UK carrier BT has announced their results for 2007/8 Q4 and end of financial year which show final quarter revenue of £5,422 million, up 2 per cent, with new wave representing 42 per cent

On the year BT was also up 2 per cent with revenue of £20,704 million. Broadband end users were at 12.7 million at March 31, 2008 of which BT’s retail share was 35 per cent
Chairman’s statement

Sir Michael Rake, Chairman, commenting on the full year results, said: “I am pleased to report that we are recommending a full year dividend of 15.8 pence per share, up 5 per cent from last year, reflecting the group’s strong performance and the Board’s continued confidence in the future of the business.

I would like to express my and the Board’s thanks to Ben Verwaayen who is stepping down as Chief Executive at the end of this month. Ben has been an exceptional CEO who has transformed the business through his vision and determination. Under his leadership, BT has developed a strategy which has delivered consistent profitable growth and laid strong foundations for the future.

It is a tribute to the strength of the team he has built that the Board has been able to recruit his replacement internally. Ian Livingston has delivered brilliantly for BT both as group finance director and as the CEO of BT Retail.

In 2008/09, we expect to deliver continued growth in revenue, EBITDA and earnings per share as we continue our transformation from a fixed-line business into a software-driven global communications services company. We also expect our free cash flow to be at a similar level to last year.

I am confident that we have the right strategy and people in place to continue to deliver value for our shareholders and expect to increase dividends per share in 2008/09.”

Ben Verwaayen, Chief Executive, commenting on the fourth quarter results, said: “We have finished the year in style with a strong fourth quarter performance. BT is in great shape with year on year growth in revenue, earnings per share, EBITDA, free cash flow and dividends per share.

BT Global Services continues to grow strongly whilst expanding EBITDA margin and delivering impressive EBITDA growth of 13 per cent. Outside the UK, BT Global Services has accelerated revenue growth to 28 per cent. BT Retail remains Britain’s favourite broadband provider in a highly competitive market and delivered strong growth in EBITDA of 8 per cent. BT Wholesale has made good progress with over £1 billion of contracts signed in the quarter. Openreach has delivered record levels of customer service performance.

It has been a fantastic privilege to work with so many great people over the past six and a half years. I am extremely proud of what they have achieved and I believe BT has a great future.”