Bt Group PLC

Results for the third quarter and nine months to 31 december 2009
(PresseBox) (München, ) BT Group plc (BT.L) today announces its results for the third quarter and nine months to 31 December 2009. BT has also made a separate announcement today in relation to the triennial funding valuation of the BT Pension Scheme.

Key points:

- Revenue of £5,198m, down 4%
- Adjusted EBITDA (1) of £1,444m, up 11% largely due to improvement in BT Global Services
- Total underlying costs (2) down 13% in the quarter, savings of £1.6bn achieved in the nine months
- Adjusted earnings per share (1) of 4.6p, up 53%, reported earnings per share up 188%
- Improvement in free cash flow (3) to £305m inflow compared with an outflow of £32m last year
- Pension deficit payment of £525m made in the quarter
- Net debt (4) down nearly £1bn compared with last year to £10.1bn
- Expect to deliver adjusted EBITDA (1) of around £5.7bn and free cash flow (3) of around £1.7bn for the full year

Ian Livingston, Chief Executive, commenting on the results, said:

"These results show that we are making progress. There is still a lot more to be done but our commitment to improved customer service and cost transformation is starting to deliver results and freeing up resources to invest in our future. In particular, we are one of Europe's largest investors in superfast fibrebased broadband and this will bring huge benefits to our customers and the UK."

(1) Before specific items, leaver costs, net interest on pensions and BT Global Services contract and financial review charges of £336m in Q3 2008/09
(2) Underlying operating costs and capital expenditure, excluding BT Global Services contract and financial review charges of £336m in Q3 2008/09
(3) Before pension deficit payment of £525m but after the cash flows related to specific items
(4) Net debt is reconciled in Note 7

Forwardlooking statements - caution advised

Certain statements in this results release are forwardlooking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning: revenue, EBITDA and free cash flow; pension service charge and net interest expense; total underlying capital expenditure and operating cost reductions; the group's liquidity and funding position; continued progress in BT Global Services delivery of cost savings; BT Wholesale long term revenue streams; and superfast fibrebased broadband and our fibre access network roll out.

Although BT believes that the expectations reflected in these forwardlooking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forwardlooking statements.

Factors that could cause differences between actual results and those implied by the forwardlooking statements include, but are not limited to: material adverse changes in economic conditions in the markets served by BT; future regulatory actions and conditions in BT's operating areas, including competition from others; selection by BT and its lines of business of the appropriate trading and marketing models for its products and services; fluctuations in foreign currency exchange rates and interest rates; technological innovations, including the cost of developing new products, networks and solutions and the need to increase expenditures for improving the quality of service; prolonged adverse weather conditions resulting in a material increase in overtime, staff or other costs; developments in the convergence of technologies; the anticipated benefits and advantages of new technologies, products and services not being realised; the underlying assumptions and estimates made in respect of major customer contracts proving unreliable; the aims of the BT Global Services' revised operating model and restructuring plan not being achieved; completion of the pension fund actuarial valuation; and general financial market conditions affecting BT's performance and ability to raise finance. BT undertakes no obligation to update any forwardlooking statements whether as a result of new information, future events or otherwise.

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