BT Group PLC
12 July 2006
July 12, 2006
BT: ACCELERATING THE TRANSFORMATION
BT's transformation from old-fashioned telco to modern communications services
provider is accelerating. That was the key message delivered today by BT
chairman Sir Christopher Bland when addressing the company's shareholders at the
Annual General Meeting at the Barbican, London.
Describing last year as "excellent", Sir Christopher noted some financial
highlights: "Our revenues grew by 6 per cent to over £19.5 billion. Profit
before tax and specific items grew 5 per cent to nearly £2.2 billion. Earnings
per share before specific items grew by 8 per cent to 19.5 pence. In 2005-6, we
further reduced the level of our debt to £7.5 billion while at the same time
spending over £360 million buying back our own shares. The year's dividend
pay-out ratio was 61 per cent of earnings and we expect it to rise to around
two-thirds of earnings in the 2007-8 financial year."
Referring to BT's strategy, Sir Christopher emphasised that BT's focus has been
on delivering "what millions of customers want - using the internet to make
cheap international phone calls, or using the broadband network to deliver the
BT Vision TV service later this year."
Turning to the recent regulatory settlement and the subsequent creation of
Openreach, Sir Christopher was unequivocal in describing the former as "the
biggest regulatory change since BT was privatised more than 20 years ago." He
continued: "We believe it marks the start of a new era of investment and
innovation, and will allow regulation to roll back in most market areas outside
the local network."
Summing up, Sir Christopher noted: "Ours is a company which succeeds by enabling
people and organisations to change. But to do this, some factors in our business
need to be unchanging. One of those factors is the commitment of our people who
have shown immense dedication, determination, talent and ingenuity over the last
few years."
Sir Christopher concluded his speech by thanking BT's shareholders for their
loyalty to the company.
Ends
Inquiries about this news release should be made to the BT Group Newsroom on its
24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369.
About BT
BT is one of the world's leading providers of communications solutions and
services operating in 170 countries. Its principal activities include networked
IT services, local, national and international telecommunications services, and
higher-value broadband and internet products and services. BT consists
principally of four lines of business: BT Global Services, Openreach, BT Retail
and BT Wholesale.
In the year ended 31 March 2006, BT Group's revenue was £19,514 million with
profit before taxation of £2,040 million.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group 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.bt.com/aboutbt
This information is provided by RNS
The company news service from the London Stock Exchange
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