SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
23 January, 2008
BT Group plc
(Translation of registrant's name into English)
BT Centre
81 Newgate Street
London
EC1A 7AJ
England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X... Form 40-F.....
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- ________
Enclosures: 1. Financial results restatement announcement made
on 23 January, 2008
DC08-31 23 January 2008
CHANGE TO PRESENTATION OF BT'S FINANCIAL RESULTS FOLLOWING IMPLEMENTATION OF
NEW ORGANISATIONAL STRUCTURE
Key points:
- Presentation of BT's financial results is being changed to reflect the
implementation of its new organisational structure announced in April 2007.
- New organisational structure provides greater visibility on end-to-end
profitability of the lines of business.
- As previously announced, results for third quarter 2007/08 and onwards
will be reported under the new structure.
- Historical results at BT group level and financial targets are unaffected
by these changes.
- BT continues to comply with the requirements of the regulatory
Undertakings and obligations.
In April 2007, BT announced its plans to accelerate its transformation into a
communications services company. Key to this acceleration is the creation of a
new organisational structure that will enable the delivery of faster, more
resilient and cost effective services to customers. BT moved to this new
structure with effect from 1 October 2007 and, as a result, is changing the
presentation of its financial results to reflect the impact of the
transformation. As previously stated, BT's results for the third quarter of
2007/08, to be announced on 7 February 2008, and onwards will be reported under
the new structure. Historical results at BT group level and financial targets
are unaffected by these changes.
The new organisational structure is based around two new internal operating
divisions, namely BT Design and BT Operate, which support the existing four
customer-facing lines of business. BT Design is responsible for the design and
development of services and BT Operate is responsible for their deployment and
operation. The divisions will help BT deliver software driven products over
next generation networks as well as drive the achievement of cost savings.
For comparative purposes, BT is today providing historical results for its lines
of business for the 2006/07 financial year and for the first half of the 2007/08
financial year on a quarterly basis under the new structure. The main changes
are that a significant amount of intra-group trading is removed and there is
greater visibility on the end-to-end profitability of the lines of business
downstream of Openreach. Trading between Openreach and other parts of the group
is broadly unchanged.
The summary financial results for the 2006/07 financial year and for the first
half of the 2007/08 financial year on a quarterly basis under the old and new
structures, showing the adjustments, are attached at Appendix I.
An analysts' conference call and presentation by Phil Moses, Group Controller
and Director of Investor Relations, will be held at 10:00 today and will be
audiowebcast simultaneously on the BT website at www.btplc.com/investorcentre
Performance indicators updated to reflect the impact of the new organisational
structure are also available on the BT website.
For further information
Inquiries about this news release should be made to the BT Group Newsroom on its
24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369. All
news releases can be accessed at our web site: www.btplc.com/News
About BT
BT is one of the world's leading providers of communications solutions and
services operating in 170 countries. Its principal activities include networked
IT services; local, national and international telecommunications services;
higher-value broadband and internet products and services and converged fixed/
mobile products and services. BT consists principally of four lines of
business: BT Global Services, Openreach, BT Retail and BT Wholesale.
In the year ended 31 March 2007, BT Group plc's revenue was GBP20,223 million
with profit before taxation of GBP2,484 million.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group. BT Group plc
is listed on stock exchanges in London and New York.
For more information, visit www.bt.com/aboutbt
APPENDIX I
Financial results 2006/07 - quarterly summary
Year ended 31 March 2007 New reporting structure
Revenue As reported Adjustment New reporting Q1 Q2 Q3 Q4
structure
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
BT Global Services 9,106 (1,794) 7,312 1,714 1,725 1,848 2,025
BT Retail 8,414 (68) 8,346 2,054 2,061 2,108 2,123
BT Wholesale 7,584 (2,198) 5,386 1,328 1,362 1,361 1,335
Openreach 5,177 46 5,223 1,271 1,290 1,326 1,336
Other 17 - 17 6 4 2 5
Intra-group trading (10,075) 4,014 (6,061) (1,509) (1,501) (1,519) (1,532)
------- --------- -------- ------ ------ ------ ------
Total 20,223 - 20,223 4,864 4,941 5,126 5,292
======= ========= ======== ====== ====== ====== ======
Year ended 31 March 2007 New reporting structure
EBITDA before As reported Adjustment New reporting Q1 Q2 Q3 Q4
specific items structure
and leaver
costs
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
BT Global Services 1,020 (244) 776 162 169 175 270
BT Retail 869 512 1,381 300 358 360 363
BT Wholesale 1,961 (450) 1,511 383 376 379 373
Openreach 1,888 43 1,931 484 470 480 497
Other 42 139 181 57 45 45 34
------- --------- -------- ------ ------ ------ ------
Total 5,780 - 5,780 1,386 1,418 1,439 1,537
======= ========= ======== ====== ====== ====== ======
Year ended 31 March 2007 New reporting structure
Depreciation As reported Adjustment New reporting Q1 Q2 Q3 Q4
and structure
amortisation
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
BT Global Services 675 (10) 665 147 155 172 191
BT Retail 171 274 445 104 105 115 121
BT Wholesale 1,198 (290) 908 222 225 229 232
Openreach 707 - 707 175 178 177 177
Other 169 26 195 55 40 48 52
------- --------- -------- ------ ------ ------ ------
Total 2,920 - 2,920 703 703 741 773
======= ========= ======== ====== ====== ====== ======
Year ended 31 March 2007 New reporting structure
Operating As reported Adjustment New reporting Q1 Q2 Q3 Q4
profit before structure
specific items
and leaver
costs
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
BT Global Services 345 (234) 111 15 14 3 79
BT Retail 698 238 936 196 253 245 242
BT Wholesale 763 (160) 603 161 151 150 141
Openreach 1,181 43 1,224 309 292 303 320
Other (127) 113 (14) 2 5 (3) (18)
------- --------- -------- ------ ------ ------ ------
Total 2,860 - 2,860 683 715 698 764
======= ========= ======== ====== ====== ====== ======
Financial results 2007/08 - quarterly summary
Half year ended 30 September 2007 New reporting structure
Revenue As reported Adjustment New reporting Q1 Q2
structure
GBPm GBPm GBPm GBPm GBPm
BT Global Services 4,536 (838) 3,698 1,815 1,883
BT Retail 4,195 (22) 4,173 2,047 2,126
BT Wholesale 3,678 (1,104) 2,574 1,318 1,256
Openreach 2,614 14 2,628 1,321 1,307
Other 12 - 12 7 5
Intra-group trading (4,907) 1,950 (2,957) (1,475) (1,482)
------- --------- -------- --------- ---------
Total 10,128 - 10,128 5,033 5,095
======= ========= ======== ========= =========
Half year ended 30 September 2007 New reporting structure
EBITDA before As reported Adjustment New reporting Q1 Q2
specific items structure
and leaver
costs
GBPm GBPm GBPm GBPm GBPm
BT Global Services 479 (115) 364 178 186
BT Retail 455 263 718 331 387
BT Wholesale 952 (215) 737 375 362
Openreach 939 14 953 482 471
Other 48 53 101 59 42
------- --------- -------- --------- ---------
Total 2,873 - 2,873 1,425 1,448
======= ========= ======== ========= =========
Half year ended 30 September 2007 New reporting structure
Depreciation and As reported Adjustment New reporting Q1 Q2
amortisation structure
GBPm GBPm GBPm GBPm GBPm
BT Global Services 339 11 350 171 179
BT Retail 82 133 215 109 106
BT Wholesale 535 (116) 419 209 210
Openreach 351 - 351 181 170
Other 95 (28) 67 39 28
------- --------- -------- --------- ---------
Total 1,402 - 1,402 709 693
======= ========= ======== ========= =========
Half year ended 30 September 2007 New reporting structure
Operating profit As reported Adjustment New reporting Q1 Q2
before specific structure
items and leaver
costs
GBPm GBPm GBPm GBPm GBPm
BT Global Services 140 (126) 14 7 7
BT Retail 373 130 503 222 281
BT Wholesale 417 (99) 318 166 152
Openreach 588 14 602 301 301
Other (47) 81 34 20 14
------- --------- -------- --------- ---------
Total 1,471 - 1,471 716 755
======= ========= ======== ========= =========
Internal revenue adjustment by line of business
2006/07 financial year
As reported
BT Global BT Retail BT Wholesale Openreach Other Total
Services
GBPm GBPm GBPm GBPm GBPm GBPm
Internal
revenue
recorded by
BT Global Services - 596 988 13 42 1,639
BT Retail 156 - 177 71 13 417
BT Wholesale 1,115 1,105 - 1,307 - 3,527
Openreach 441 2,517 1,499 - 35 4,492
-------- ------- -------- -------- -------- --------
Total 1,712 4,218 2,664 1,391 90 10,075
======== ======= ======== ======== ======== ========
Adjustment
BT Global BT Retail BT Wholesale Openreach Other Total
Services
GBPm GBPm GBPm GBPm GBPm GBPm
Internal
revenue
recorded by
BT Global Services - -596 -988 -13 -42 -1,639
BT Retail -25 - -104 -69 27 -171
BT Wholesale -1,115 -1,105 - -30 - -2,250
Openreach - - -1,461 - 1,507 46
-------- ------- -------- -------- -------- --------
Total -1,140 -1,701 -2,553 -112 1,492 -4,014
======== ======= ======== ======== ======== ========
New reporting structure
BT Global BT Retail BT Wholesale Openreach Other Total
Services
GBPm GBPm GBPm GBPm GBPm GBPm
Internal
revenue
recorded by
BT Global - - - - - -
Services
BT Retail 131 - 73 2 40 246
BT Wholesale - - - 1,277 - 1,277
Openreach 441 2,517 38 - 1,542 4,538
-------- ------- -------- -------- -------- --------
Total 572 2,517 111 1,279 1,582 6,061
======== ======= ======== ======== ======== ========
Internal revenue adjustment by line
of business
2007/08 half year
As reported
BT Global BT Retail BT Wholesale Openreach Other Total
Services
GBPm GBPm GBPm GBPm GBPm GBPm
Internal
revenue
recorded by
BT Global - 294 439 7 23 763
Services
BT Retail 91 - 74 39 3 207
BT Wholesale 555 563 - 628 -4 1,742
Openreach 210 1,224 744 - 17 2,195
-------- ------- -------- -------- -------- --------
Total 856 2,081 1,257 674 39 4,907
======== ======= ======== ======== ======== ========
Adjustment
BT Global BT Retail BT Wholesale Openreach Other Total
Services
GBPm GBPm GBPm GBPm GBPm GBPm
Internal
revenue
recorded by
BT Global Services - -294 -439 -7 -23 -763
BT Retail -12 - -44 -38 18 -76
BT Wholesale -555 -563 - -11 4 -1,125
Openreach - - -724 - 738 14
-------- ------- -------- -------- -------- --------
Total -567 -857 -1,207 -56 737 -1,950
======== ======= ======== ======== ======== ========
New reporting structure
BT Global BT Retail BT Wholesale Openreach Other Total
Services
GBPm GBPm GBPm GBPm GBPm GBPm
Internal
revenue
recorded by
BT Global Services - - - - - -
BT Retail 79 - 30 1 21 131
BT Wholesale - - - 617 - 617
Openreach 210 1,224 20 - 755 2,209
-------- ------- -------- -------- -------- --------
Total 289 1,224 50 618 776 2,957
======== ======= ======== ======== ======== ========
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
BT Group PLC
(Registrant)
By: /s/ Patricia Day
--------------------
Patricia Day, Assistant Secretary.
Date 23 January, 2008