BT Reports Preliminary Results for 1995 Fiscal Year

Strategic Insights -

British Telecommunications plc, formerly known as British Telecom, has announced its preliminary results for the year to March 31, 1995. The company reported earnings per ADR of 2.78 pounds ($4.53), a decrease from 2.85 pounds in the previous year. Redundancy charges of 820 million pounds ($1.337 billion) were included in the results for the year, while earnings for the fourth quarter were 0.57 pounds ($0.93) compared to 0.56 pounds in the prior period. The company's income before tax decreased to 2.662 billion pounds ($4.339 billion) for the year and 509 million pounds ($830 million) in the fourth quarter. Revenues for the year increased by 1.6 percent and by 2.6 percent in the fourth quarter.

Key Takeaways:

  • Earnings per ADR for the year decreased to 2.78 pounds ($4.53) compared to 2.85 pounds in the previous year.
  • Redundancy charges for the year were 820 million pounds ($1.337 billion), while in the fourth quarter they were 452 million pounds ($737 million).
  • Income before tax for the year decreased to 2.662 billion pounds ($4.339 billion), and decreased to 509 million pounds ($830 million) in the fourth quarter.
  • Revenues for the year increased by 1.6 percent and by 2.6 percent in the fourth quarter.
  • Call volumes for domestic calls grew by 7 percent, while international call volume grew at 5 percent on a twelve-month moving average.
  • Access line growth was 0.7 percent for residential and 5.4 percent for the business sector, giving an increase of 1.8 percent overall.
  • Cellular customers grew by 715,000 in the year and by 173,000 in the quarter. At March 31, 1995, BT had 1,734,000 Cellular customers.
  • Manpower reduced by 18,500 in the year and by 7,300 in the fourth quarter, with a total employed in the Group at March 31, 1995 of 137,500.
  • The final dividend recommended was 1.33 pounds ($2.17) gross per ADR.

Statistics:

  • Earnings per ADR for the year: 2.78 pounds ($4.53)
  • Redundancy charges for the year: 820 million pounds ($1.337 billion)
  • Income before tax for the year: 2.662 billion pounds ($4.339 billion)
  • Revenues for the year: increased by 1.6 percent
  • Call volumes for domestic calls: grew by 7 percent on a twelve-month moving average
  • International call volume: grew at 5 percent on a twelve-month moving average
  • Access line growth: 0.7 percent for residential and 5.4 percent for the business sector
  • Cellular customers: grew by 715,000 in the year and by 173,000 in the quarter
  • Total employed in the Group: 137,500 at March 31, 1995

Sources:

  • British Telecommunications plc (NYSE: BTY)
  • PRNewswire (May 18, 1995)