This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BT Group Management Discusses Q1 2013 Results - Earnings Call Transcript

So from that, let's go to the individual lines of business on Slide 5, Global Services. Global Services revenue was down 9% headline basis, was at down 6% excluding transit. If you look on the right-hand side, I think you see the key movements. And over half of the underlying ex transit revenue decline came from tough conditions in Continental Europe and financial services sector, and we do show that in the numbers. I don't think that's a huge surprise. Certainly, the market has not got better. It's got worse, I think, recently, and we saw, for instance, double-digit declines in Spain even in constant currency, and in addition to that, with the currency movements, it's significant declines.

Underlying operating costs I think have started to go in the right direction. They're down 6%, and I would stress that's excluding foreign exchange, so it will be down more than that on a -- including foreign exchange. And that's meant that the underlying EBITDA is down 8%. However, actually, a big part of that was the fact we had more leavers cost charged to P&L this year than last year in this quarter, and leaver costs have been volatile. And as you know -- remember, those of you who have been around a while, that we used to show ex leavers as a key measure. And actually, ex leavers were down 3% in Global Services, and we're still committed to growth in EBITDA in Global Services for the year as a whole. So I think just to put it in context, it is a tough market. But with the right cost program, and I think there's a lot more to be done there, we still believe Global Services can grow its EBITDA.

Cash flow. We said that cash flow would be lower this year, and it was down in the quarter. Some of the things that we thought would happen, and we can talk in more detail of it, and Tony will do, there's lower contract-related receipts, some delays in debt receipts and time and supply payments. We did see in Q4 that you would expect Q1 and Q2 to be lower due to working capital in Global Services, so that -- a lot of that we expected.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,440.59 -127.94 -0.73%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs