Final Results.
Key points:
· Underlying revenue excluding transit down 1.9% for the year, within our target range
· EBITDA1 target of above £6bn delivered a year early
· Free cash flow2 of £2.5bn, up 13% and well above expectations
· Net debt up £266m after £2.0bn pension deficit payment
· Proposed
final dividend of 5.7p, up 14%, giving a full year dividend of 8.3p, up 12%
· 10m homes and businesses passed with fibre, many months ahead of schedule
Outlook:
We expect
· Underlying revenue excluding transit to show an improving trend in 2013 and 2014
· Growth in EBITDA1 in 2013 and 2014
· Normalised free cash flow (which excludes pension deficit payments and related tax credits) of £2,307m in 2012 to be broadly level in 2013 and above £2.4bn in 2014
· BT Global Services to deliver solid EBITDA growth in 2013
· BT Global Services operating cash flow to be lower in 2013 before returning to growth in 2014
· Dividends to grow by 10%-15% per year for the next three years
· Share buyback programme of around £300m in 2013