Investment in communications infrastructure, and strong demand for network and IT services, help boost BT’s performance

Dublin and Belfast, Friday 11th May 2012: BT today announced the results for its all-Ireland operation for the full year to 31st March 2012.  Reported revenue of £757m was up 1% year on year (broadly flat in the year excluding the impact of foreign exchange).  Profits (EBITDA*) increased by 9% year on year, as a result of continued transformation (including improved supplier management and efficiency programmes) and the successful delivery of several large retail and wholesale contracts.  Free Cash Flow (FCF**) also grew; up 13% year on year.

Colm O’Neill, Chief Executive, BT Ireland said, “We have delivered increased revenues, profits and free cash flow, despite the economic headwinds, which demonstrates the stability and strength of our business.

“By continuing to transform our cost base and re-invest for growth our products and solutions portfolio has never been stronger.  Continued investment in building advanced communications networks across the island, coupled with excellent IT services capabilities, is proving to be BT’s compelling differentiator in this market.”

BT Ireland’s Consumer division, which operates in Northern Ireland, recorded strong demand for BT Infinity, its superfast fibre broadband service, which provides consumers with download speeds of up to 76Mbps. Take up increased by more than four-fold year on year.  There has been rapid growth in Wi-Fi (wireless broadband) and BT’s network of Wi-Fi hotspots in Northern Ireland has grown to over 168,000. This gives BT broadband customers free access to one of the biggest Wi-Fi networks in the world.  Over 68% of BT consumer customers have now signed up for BT’s inclusive call packages offering unlimited calls to fixed lines in the UK and Ireland.  Demand for BT Vision, the company’s TV service, gathered momentum in the year, and is expected to be boosted by Northern Ireland’s Digital TV Switchover in October 2012.

A strong portfolio of network and IT services helped BT Business increase revenues year on year, and secure a wide variety of contracts with business and government organisations including: Allianz Group, Belfast Health and Social Care Trust, Belfast Metropolitan College, Elavon Financial Services, FBD Insurance, Randox Laboratories, ROI Department of Social Protection, NI Department of Finance & Personnel, the Police Service of Northern Ireland and Tourism Ireland.  BT Business recorded double-digit percentage revenue growth in IT services/hardware for the third year running, cementing BT Ireland’s position as a leading partner of Avaya, Cisco, EMC and HP.  In Northern Ireland, BT Business sales of fibre broadband, BT Infinity, more than trebled year on year as businesses adopt superfast broadband to underpin their growth.  

BT Ireland’s Wholesale division is now the number one wholesaler of fixed line services in Northern Ireland, and the second largest in the Republic of Ireland, boosted by BT’s significant investment programme in network infrastructure on both sides of the border.  BT’s fibre roll-out in Northern Ireland is one of the most rapid in the world, and has now reached 89% coverage with over 750,000 premises passed. In the Republic of Ireland, BT is significantly increasing its local loop unbundling (LLU) footprint, giving the company the capability to deliver high speed broadband to more than 1.1 million phone lines around the country at speeds of up to 24Mbs.  Multiple operators are now using BT’s LLU network to enable them to offer high speed broadband in the Republic.  Other wholesale contracts signed during the year include Telefonica Ireland, Three Ireland and Vodafone Ireland.

BT Ireland’s roll-out of Total Transmission, an advanced next-generation fibre network in urban and provincial areas in the Republic, is on track, and is providing high-speed, low-cost access to meet the significant transmission bandwidth requirements of businesses, government organisations and communications providers. BT is delivering up to 100Gbps capability across this network and an expected future capability of 1 Terabit as this technology matures.

In addition to the 120 new jobs created by BT Group in Belfast last week, BT Northern Ireland will take on 21 new sales agents this week to help cater for the company’s residential and business customers. BT Ireland will also recruit a further 10 network apprentices in September this year which is in addition to the 44 engineers recruited to install superfast fibre broadband in the last 12 months.

Ends

Notes to Editor:* EBITDA: Earnings before interest, taxation, depreciation and amortisation.** Reported Free Cash Flow is defined as the net increase in cash and cash equivalents less cash flows from financing activities*** Revenue increased by 4% in Q4 (2011/12), excluding the impact of foreign exchange movements**** EBITDA is reported before specific items

For more information please contact:Priscilla O’Regan, Head of Communications, BT in IrelandTel: 00 353 86 633 5398Email: priscilla.oregan@bt.com

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.BT is the official communications services partner of the London 2012 Olympic and Paralympic Games. BT is also a sustainability partner of the Games and a Premier Partner of the London 2012 Cultural Olympiad.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