BT outlined a series of strategic priorities as it seeks to transform into a leader in converged connectivity and services.
Highlights include:
- Launching new converged product offerings to deliver differentiated customer experiences, support customer loyalty and improve economic returns;
- Increasing FTTP and mobile infrastructure investment within an annual CAPEX allocation of around £3.7bn;
- Accelerating the restructuring and transformation of Global Services by introducing new digital products with a greater focus on our top global customers, reducing capital intensity, and significantly lowering costs;
- Focusing on around 30 modern, strategic sites to create a more collaborative, open and customer-focused working culture, including plans to exit BT’s headquarters in Central London;
- A three-year reduction of c.13,000 mainly back office and middle management roles;
- A year 3 cash cost reduction of £1.5 billion with costs to achieve of £800 million and 2-year payback;
- Cost reductions to help offset near-term cost and revenue pressures, provide capacity to invest in value-enhancing projects and drive longer-term profit growth;
- Hiring c.6,000 new employees to support network deployment and customer service.
“BT is uniquely positioned to be a leader in converged connectivity and services. We are a clear market leader in terms of the scale of our customer relationships. We have the UK’s leading fixed and mobile access networks, a portfolio of strong and well-segmented brands, and close strategic partnerships. We provide products and services that are essential to both consumers and businesses, delivered through multiple channels to suit their needs. This position of strength will enable us to build on the disciplined delivery and risk reduction of the last financial year, a period during which we delivered overall in-line with our financial and operational commitments whilst addressing many uncertainties,” stated Gavin Patterson, BT Chief Executive.
Separately, BT reported revenue of £5,967 billion for its fourth fiscal quarter ending 31-March-2018, down 1% for the year and 3% for the quarter.
Some operational highlights
- Gfast premises of 1m and FTTP premises of 560,000 passed in Q4; over 1.5m premises able to connect to ultrafast service
- Openreach fibre connections at 555,000 in Q4 with superfast fibre broadband passing nearly 27.6m UK premises
- 4G coverage reaches 90% of the country as we deploy in hard to reach areas
- Mobile postpaid net additions of 95,000, with low churn of 1.2%; monthly mobile postpaid ARPU down 1% to £26.0
- BT Sport rights packages secured; includes Premier League matches for a further three years from 2019/20
- Average BT Sport viewing increased 19% year on year; second best quarterly performance since launch
- BT Consumer revenue generating units per customer increased 3% to 2.03, with ARPU up 5% to £41.7
