bta201306136k.htm
 
 
SECURITIES AND EXCHANGE COMMISSION
 
 
Washington, D.C. 20549
 
 
FORM 6-K
 
 
Report of Foreign Private Issuer
 
 
Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 
 
Date of Announcement: 13 June 2013
 
 
BT Group plc
 
 
(Translation of registrant's name into English)


 
 
BT Group plc

81 Newgate Street

London

EC1A 7AJ

England
 
 
(Address of principal executive offices)

 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


 
 
Form 20-F..X...             Form 40-F.....

 

 
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


 
 
Yes .....           No ..X..



 
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________





 
 
                                                                                                                             13 June 2013
 
BT SIMPLIFIES FINANCIAL AND OPERATIONAL DISCLOSURE
 
In order to simplify the disclosure of its financial and operational performance, BT Group has today announced changes to the future measurement and presentation of key performance indicators (KPIs) and line of business financial information. Below we explain those changes and provide restated information for the years ended 31 March 2013 and 31 March 2012 prepared on a consistent basis.
 
We are making a number of changes that simplify our internal trading and more closely align our line of business financial results and our regulatory accounts. For example, BT Wholesale's results now reflect only revenue generated externally. We are also adjusting the disclosure of our lines of business to reflect customer account moves and to better reflect their commercial activity. In order to present historical information on a consistent basis, we have revised comparative information for the years ended 31 March 2013 and 31 March 2012 for a number of items that impact the financial results of individual lines of business, but have no impact on the total group results.
 
To simplify our reporting, we will also no longer separately report other operating income. We have re-presented items previously reported as other operating income as either revenue or a reduction in operating costs (as appropriate). Other operating income before specific items was £392m in the year ended 31 March 2013 (2011/12: £387m). This change increases group revenue by £86m for the year ended 31 March 2013 (2011/12: £90m) and reduces operating costs by £306m (2011/12: £297m). There is no impact on the group's EBITDA or net profit.
 
Finally, IAS 19 Employee Benefits (Revised) came into effect from 1 April 2013 and we have restated comparative figures to reflect the position had it applied in those years. In the year ended 31 March 2013, this has increased operating costs by £38m and has reduced net finance income on pensions (treated as a specific item) by £148m (2011/12: £295m), resulting in an overall reduction of £38m in EBITDA (2011/12: £30m) and adjusted profit before tax. Reported profit before tax and reported profit after tax, which are after the impact of specific items, are reduced by £186m (2011/12: £325m) and £143m (2011/12: £247m), respectively.  There is no impact on the group's free cash flow.
 
The financial impact for the years ended 31 March 2013 and 31 March 2012 is outlined below, and the updated KPI document is available at www.btplc.com/results
 
Results for the first quarter to 30 June 2013 (which are expected to be announced on Thursday 25 July 2013) will be presented on this revised basis.
 
 
Enquiries
Press office:
Ross Cook                                                      Tel: 020 7356 5369
 
Investor relations:
Damien Maltarp                                               Tel: 020 7356 4909
 
 
About BT
 
 
BT is one of the world's leading providers of communications services and solutions, serving customers in more than 170 countries.  Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services.  BT consists principally of four lines of business: BT Global Services, BT Retail, BT Wholesale and Openreach.
In the year ended 31 March 2013, BT Group's revenue was £18,017m with profit before taxation of £2,501m.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group.  BT Group plc is listed on stock exchanges in London and New York. 
For more information, visit www.btplc.com
 
Appendix - impact of restatements on 2012/131
 
£m
As reported - 2012/13
  
Adjustments
  
Restated - 2012/13
 
Q1
Q2
Q3
Q4
FY
  
Q1
Q2
Q3
Q4
FY
  
Q1
Q2
Q3
Q4
FY
BT Global Services
                                  
Revenue
1,730
1,757
1,746
1,933
7,166
  
1
-
2
1
4
  
1,731
1,757
1,748
1,934
7,170
EBITDA
119
130
163
214
626
  
52
52
52
50
206
  
171
182
215
264
832
Operating profit
(36)
(23)
7
55
3
  
51
53
51
49
204
  
15
30
58
104
207
Free cash flow
(315)
(171)
88
404
6
  
52
52
52
50
206
  
(263)
(119)
140
454
212
                                   
BT Retail
                                  
Revenue
1,776
1,791
1,793
1,868
7,228
  
18
17
17
19
71
  
1,794
1,808
1,810
1,887
7,299
EBITDA
476
474
474
511
1,935
  
17
21
26
26
90
  
493
495
500
537
2,025
Operating profit
381
376
375
413
1,545
  
(11)
(7)
(3)
4
(17)
  
370
369
372
417
1,528
Free cash flow
247
317
450
494
1,508
  
1
17
21
29
68
  
248
334
471
523
1,576
                                   
BT Wholesale
                                  
Revenue
923
861
890
914
3,588
  
(245)
(245)
(245)
(245)
(980)
  
678
616
645
669
2,608
EBITDA
300
280
289
299
1,168
  
(137)
(137)
(136)
(138)
(548)
  
163
143
153
161
620
Operating profit
152
133
140
150
575
  
(53)
(52)
(51)
(53)
(209)
  
99
81
89
97
366
Free cash flow
129
200
251
316
896
  
(137)
(137)
(136)
(138)
(548)
  
(8)
63
115
178
348
                                   
Openreach
                                  
Revenue
1,257
1,269
1,274
1,267
5,067
  
13
14
12
9
48
  
1,270
1,283
1,286
1,276
5,115
EBITDA
553
582
579
600
2,314
  
80
82
83
83
328
  
633
664
662
683
2,642
Operating profit
309
339
335
359
1,342
  
(34)
(32)
(31)
(31)
(128)
  
275
307
304
328
1,214
Free cash flow
209
246
365
327
1,147
  
80
82
83
83
328
  
289
328
448
410
1,475
                                   
Other
                                  
Revenue
16
11
13
21
61
  
1
7
8
20
36
  
17
18
21
41
97
EBITDA
15
31
43
49
138
  
(23)
(27)
(34)
(30)
(114)
  
(8)
4
9
19
24
Operating profit
(66)
(50)
(15)
4
(127)
  
36
29
25
22
112
  
(30)
(21)
10
26
(15)
Free cash flow
(394)
(276)
(347)
(240)
(1,257)
  
4
(14)
(20)
(24)
(54)
  
(390)
(290)
(367)
(264)
(1,311)
                                   
Intra-group items
                                  
Revenue
(1,218)
(1,215)
(1,206)
(1,218)
(4,857)
  
232
226
223
226
907
  
(986)
(989)
(983)
(992)
(3,950)
                                   
TOTAL
                                  
Revenue
4,484
4,474
4,510
4,785
18,253
  
20
19
17
30
86
  
4,504
4,493
4,527
4,815
18,339
EBITDA
1,463
1,497
1,548
1,673
6,181
  
(11)
(9)
(9)
(9)
(38)
  
1,452
1,488
1,539
1,664
6,143
Operating profit
740
775
842
981
3,338
  
(11)
(9)
(9)
(9)
(38)
  
729
766
833
972
3,300
Free cash flow
(124)
316
807
1,301
2,300
  
-
-
-
-
-
  
(124)
316
807
1,301
2,300
 
1 Before specific items. Free cash flow is before purchases of telecommunications licences, pension deficit payments and the cash tax benefit of pension deficit payments
 
Appendix - impact of restatements on 2011/121
 
£m
As reported - 2011/12
  
Adjustments
  
Restated - 2011/12
 
Q1
Q2
Q3
Q4
FY
  
Q1
Q2
Q3
Q4
FY
  
Q1
Q2
Q3
Q4
FY
BT Global Services
                                  
Revenue
1,905
2,014
1,894
1,996
7,809
  
1
1
1
-
3
  
1,906
2,015
1,895
1,996
7,812
EBITDA
138
159
144
186
627
  
51
51
52
54
208
  
189
210
196
240
835
Operating profit
(37)
(31)
(25)
8
(85)
  
53
55
54
57
219
  
16
24
29
65
134
Free cash flow
(60)
(55)
134
164
183
  
51
51
52
54
208
  
(9)
(4)
186
218
391
                                   
BT Retail
                                  
Revenue
1,830
1,853
1,849
1,861
7,393
  
22
19
19
19
79
  
1,852
1,872
1,868
1,880
7,472
EBITDA
446
445
453
486
1,830
  
25
27
30
25
107
  
471
472
483
511
1,937
Operating profit
344
343
352
381
1,420
  
3
5
7
(2)
13
  
347
348
359
379
1,433
Free cash flow
294
344
284
440
1,362
  
16
26
21
28
91
  
310
370
305
468
1,453
                                   
BT Wholesale
                                  
Revenue
1,004
982
979
958
3,923
  
(245)
(245)
(245)
(245)
(980)
  
759
737
734
713
2,943
EBITDA
307
305
303
293
1,208
  
(135)
(134)
(135)
(137)
(541)
  
172
171
168
156
667
Operating profit
155
156
154
139
604
  
(49)
(47)
(49)
(51)
(196)
  
106
109
105
88
408
Free cash flow
119
222
145
314
800
  
(135)
(134)
(135)
(137)
(541)
  
(16)
88
10
177
259
                                   
Openreach
                                  
Revenue
1,255
1,280
1,300
1,301
5,136
  
14
14
13
10
51
  
1,269
1,294
1,313
1,311
5,187
EBITDA
538
567
591
603
2,299
  
79
81
81
78
319
  
617
648
672
681
2,618
Operating profit
306
335
355
364
1,360
  
(40)
(39)
(37)
(42)
(158)
  
266
296
318
322
1,202
Free cash flow
177
350
304
364
1,195
  
79
81
81
78
319
  
256
431
385
442
1,514
                                   
Other
                                  
Revenue
10
10
13
17
50
  
2
2
4
2
10
  
12
12
17
19
60
EBITDA
7
19
33
41
100
  
(28)
(32)
(36)
(27)
(123)
  
(21)
(13)
(3)
14
(23)
Operating profit
(71)
(61)
(46)
(29)
(207)
  
25
19
17
31
92
  
(46)
(42)
(29)
2
(115)
Free cash flow
(329)
(298)
(233)
(373)
(1,233)
  
(11)
(24)
(19)
(23)
(77)
  
(340)
(322)
(252)
(396)
(1,310)
                                   
Intra-group items
                                  
Revenue
(1,240)
(1,245)
(1,261)
(1,258)
(5,004)
  
230
232
230
235
927
  
(1,010)
(1,013)
(1,031)
(1,023)
(4,077)
                                   
TOTAL
                                  
Revenue
4,764
4,894
4,774
4,875
19,307
  
24
23
22
21
90
  
4,788
4,917
4,796
4,896
19,397
EBITDA
1,436
1,495
1,524
1,609
6,064
  
(8)
(7)
(8)
(7)
(30)
  
1,428
1,488
1,516
1,602
6,034
Operating profit
697
742
790
863
3,092
  
(8)
(7)
(8)
(7)
(30)
  
689
735
782
856
3,062
Free cash flow
201
563
634
909
2,307
  
-
-
-
-
-
  
201
563
634
909
2,307
 
1 Before specific items. Free cash flow is before purchases of telecommunications licences, pension deficit payments and the cash tax benefit of pension deficit payments
 

 
 
Signatures
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



 
 
BT Group plc
(Registrant)

 
By: /s/ Dan Fitz, Company Secretary
--------------------



 
Dan Fitz, Company Secretary.

 
Date 13 June 2013