BT Wholesale and Ventures Financial and Operational Performance

BT Wholesale and Ventures has a strong financial and operational performance, with a significant presence in the UK market.

The company's revenue from wholesale and venture activities has been steadily increasing over the years, reaching £4.2 billion in 2020.

This growth can be attributed to the company's strategic investments in new technologies and partnerships with other businesses.

BT Wholesale and Ventures has also been successful in expanding its customer base, with over 1 million active customers across various sectors.

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Tollring has strengthened its seven-year relationship with BT Wholesale by renewing its contract, which includes the continued supply of Tollring's market-leading call analytics.

The partnership is a testament to the value that Tollring's call analytics brings to businesses, helping them improve staff productivity and customer satisfaction.

BT Wholesale delivers value to channel partners' propositions with iCall Suite call analytics, and Tollring's call analytics provide business-critical customer interaction data.

Tollring will continue to develop its customer engagement and sales enablement programmes, including fully branded support materials and tailored webinars.

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Thea Tanner, Commercial and Propositions Director at BT Wholesale, says that call analytics plays a vital role in BT Wholesale and is highly valued across its business customers and channel partners.

Richard Jones, Commercial Director at Tollring, is delighted to extend and strengthen their relationship with BT Wholesale, with exciting plans in place for 2023.

Tollring's software products have become more mature and complete in functionality over the years, thanks to its established partnership with BT Wholesale.

The partnership has allowed Tollring to integrate its call analytics into BT's ordering system via API, ensuring a seamless experience for new customers.

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BT Wholesale and Ventures has reported a decline in revenue, with adjusted revenue down 1% to £8,940m in the first half of the year. This is mainly due to a £75m reduction in transit revenue.

Net labour costs decreased by 3% and payments to telecommunications operators were down 5% due to lower mobile termination rates. Property and energy costs were down 4% and network operating and IT costs were flat.

Adjusted EBITDA was £2,874m, down 2%, but excluding foreign exchange movements and the net impact from acquisitions and disposals, underlying EBITDA was down 3%.

Let's take a look at the line of business results. The group's trading results are measured before specific items, which are those that need to be disclosed due to their size, nature, or incidence.

This approach helps provide a meaningful analysis of the trading results, and it's consistent with how financial performance is measured by management. The directors believe this presentation is relevant to understanding the group's financial performance.

The group's restated results show revenue of £n/m, operating costs of £n/m, and EBITDA of £n/m. However, these figures are not meaningful, so we'll focus on the adjusted results.

Adjusted results show revenue of £n/m, operating costs of £n/m, and EBITDA of £n/m. This is before specific items, which include purchases of telecommunications licences, pension deficit payments, and the cash tax benefit of pension deficit payments.

The group's underlying revenue, costs, and EBITDA are measures that reflect the underlying performance of the group. These measures exclude the impact of acquisitions and disposals, foreign exchange movements, and any specific items.

Underlying revenue excluding transit revenue is the focus, as transit traffic is low-margin and significantly affected by reductions in mobile termination rates.

Our group's revenue trend, excluding transit, was down 0.8% in the first half of 2013.

This decline mainly reflected the anticipated impact of regulatory price reductions. Adjusted revenue of £8,940m was down 1% with a £75m reduction in transit revenue.

Foreign exchange movements had a £68m positive impact, and acquisitions and disposals had a £16m positive net impact.

Underlying operating costs, excluding transit, were flat as efficiencies from our cost transformation programmes offset the investment in BT Sport and a £31m increase in the non-cash pensions operating charge.

Operating costs were also flat. Net labour costs decreased by 3%, and payments to telecommunications operators were down 5% due to lower mobile termination rates.

Property and energy costs were down 4%, and network operating and IT costs were flat. Other operating costs increased by 10% mainly due to BT Sport.

Adjusted EBITDA, which includes the impact of our investment in BT Sport, was £2,874m, down 2%. Excluding foreign exchange movements and the net impact from acquisitions and disposals, underlying EBITDA was down 3%.

Depreciation and amortisation of £1,374m was down 5% reflecting the more efficient delivery of our capital expenditure programmes over the last few years.

Net finance expense was £294m, down 13% mainly due to lower net debt and a lower average interest rate.

Adjusted profit before tax of £1,204m was up 3% as the lower depreciation and amortisation and net finance expense more than offset the decline in EBITDA.

Reported profit before tax was £948m, down 13%. The effective tax rate on profit before specific items was 22.5% (HY 2012/13: 22.7%).

Adjusted EPS was 11.9p, up 3%, and reported EPS (after specific items) was 12.2p, up 1%. These are based on a weighted average number of shares in issue of 7,852m (HY 2012/13: 7,813m).

Specific items resulted in a net credit after tax of £26m (HY 2012/13: £42m).

BT Wholesale and Ventures operate a range of business operations that enable the delivery of services to customers.

Their operations are designed to meet the needs of large businesses and carriers, providing a platform for the supply of wholesale products and services.

BT Wholesale offers a wide range of products and services, including broadband, voice, and data solutions, which are delivered through a variety of channels.

Their services are designed to support the needs of large businesses and carriers, providing a scalable and flexible platform for the supply of wholesale products and services.

BT Wholesale has a significant presence in the UK market, with a network of over 100,000 kilometers of fiber and copper cable.

The company's business operations are supported by a team of experienced professionals who work closely with customers to understand their needs and deliver tailored solutions.

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Openreach is making significant progress in extending fibre broadband to rural areas, with 44 regional contracts won and 22 of these contracts underway with surveys and civil works commenced.

They've started rolling out fibre in 13 of these areas, including Cornwall, North Yorkshire, Wales, Surrey, and Rutland, which has passed more than 100,000 premises in the quarter.

Openreach has now passed more than 17 million premises with their fibre broadband network.

The company is also experimenting with vectoring, a technology that reduces interference between signals in co-located copper wires, to improve end-user data speeds in fibre-to-the-cabinet networks. Field trials are underway in Braintree and Barnet.

Net fibre connections increased by 70% in the quarter, with 316,000 new connections achieved. This brings the total number of homes and businesses connected to over 2 million.

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At BT Wholesale and Ventures, we're committed to reducing our environmental footprint. We're on track to avoid 100% of our CO2e emissions by the end of March 2030.

Our focus on sustainability is evident in our energy usage, with 100% of our electricity coming from renewable sources. This is a significant step towards reducing our carbon emissions.

We've already achieved a 61% reduction in our carbon emissions since FY17, demonstrating our dedication to sustainability. This is a testament to our efforts to minimize our impact on the environment.

In the UK, BT Wholesale offers IPstream, a wholesale broadband Internet service that's widely used by ISPs and IPTV providers. IPstream provides ADSL services to customers over Openreach telephone lines.

BT Wholesale has operational control of the network, which means they handle tasks like load balancing. This takes a burden off the ISPs, who can focus on other services like email servers.

ISPs use IPstream because it's cheaper to set up and maintain than building their own network. However, usage costs for ISPs are higher using IPstream than their own network.

In contrast, datastream is a similar system where ISPs use BT equipment but their own IP transport. This option balances the cost and control.

BT Wholesale pays Openreach for access to the local loop and the exchange, which is an essential part of the IPstream service.

Here's a brief overview of the IPstream service:

BT has largely retired IPstream in favor of its Wholesale Broadband Connect service, which offers similar benefits to ISPs.

We're making great strides in sustainability, and I'm excited to share some of our achievements with you. We've managed to avoid 100% of our CO2e emissions by the end of March 2030.

Our commitment to renewable energy has paid off, with 100% of our electricity now coming from sustainable sources.

One of the most significant reductions we've seen is in our carbon emissions, which have decreased by 61% since FY17.

At BT Wholesale and Ventures, professional services are designed to help navigate the digital switchover with confidence.

Their team provides the support and expertise needed to make this transition smooth and successful.

This support is crucial for businesses that are new to digital services, as it helps them get up to speed quickly and avoid any potential pitfalls.

By having a trusted partner like BT Wholesale and Ventures, businesses can focus on their core operations while leaving the technical expertise to the professionals.

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BT Global Services is a shining example of a company that's adapting to the changing landscape. They've seen a 4% decline in revenue, but that's largely due to a £9m decline in transit revenue.

The company has been working hard to reduce costs, and it's paying off – operating costs were down 5% in the quarter. This is a testament to their cost transformation programmes, which have also led to an 8% decline in underlying operating costs excluding transit.

One of the key areas of growth for BT Global Services has been in the high-growth regions of Asia Pacific, Latin America, Turkey, the Middle East, and Africa. This is a trend that's likely to continue, as these regions continue to develop and grow.

The company has also seen a significant increase in total order intake, up 19% to £1.5bn. This is a result of signing contracts with major companies across various sectors, including Unilever, Visa Europe, and Fiat Spa.

Their cost efficiency and reliability of network have improved, with the closure of their legacy global data network and the migration of customers to their strategic global network. This has led to improved service and reduced costs.

EBITDA has increased by 10%, mainly driven by their cost transformation initiatives. This is a significant boost to the company's bottom line.

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Professional services can provide the support and expertise to navigate the digital switchover with confidence.

Having a professional team by your side can make a big difference in understanding and implementing digital changes.

Their guidance can help you stay on top of the latest developments and make informed decisions about your business.

With their expertise, you can focus on what matters most – running your business smoothly.

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