Addressing shareholders at its annual general meeting in London, Sir Christopher Bland, BT's chairman said the company has undergone a complete transformation over the past 2 years because it was able to make tough financial decisions early on. He pointed out that just two years ago the company's debt had reached £28 billion; it had forgotten how to generate free cash flow; its strategy was unclear; and the morale of customers, employees and shareholders was low. Since then, BT has cut its net debt to £9.6 billion, two years ahead of schedule. Last year, earnings per share grew by 61 per cent and BT generated operating free cash flow of £1.7 billion, surpassing its 2004/05 target. Looking ahead, Sir Christopher said the improved financial situation would make possible larger dividends for shareholders.
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- As of 16-May-2003, BT had 936,000 broadband end users. The company was adding about 25,000 new DSL accounts per week . At the time, BT's footprint was covering about 69% of UK households.
