BT posted annual revenues of £18,727 million for the fiscal year ending 31-March-2003, up by 2%. Earnings per share rose to 14.2 pence, up 61% compared to the prior year. BT said the substantial growth in earnings and cash flow reflects an improved operational efficiency of its business. Some key points:
- BT had 936,000 broadband end users as of 16-May-2003. The company is adding about 25,000 new DSL accounts per week and says that "broadband is at the heart of BT." The DSL footprint currently covers 69% of UK households.
orders for MPLS-based services rose 94% in the quarter ended 31-March-2003, compared to the prior period.
the company's net debt was reduced from £13.7 billion to £9.6 billion. Net debt is now at about one-third of its all-time peak level in 2001.
during the year, BT generated free cash flow of £1.7 billion. The free cash flow rate is 2 years ahead of the company's operating plan.
BT said strength in its "new wave businesses" and a strong defense of market share in its existing businesses was offset by price deflation.
CAPEX for the year was reduced by 21% to £2.45 billion. Over the next 2 years, BT is forecasting CAPEX in the range of £2.6 to £3.0 billion per annum.
