Consumer Business Briefing - 17 May 2018 - BT Plc
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Consumer Business Briefing 17 May 2018
Welcome
Marc Allera, CEO
@MarcAllera
2 © British Telecommunications plc 2018
Performance in 17/18
BT Consumer – focus on higher value customers
• Revenue up 3% driven by: Q4 FY
Change Change
– Broadband, TV, Sport, and Mobile 17/18 17/18
– 12-month rolling ARPU1 up 5% Revenue £1,289m 3% £5,066m 3%
– RGUs2 per customer up 3% to 2.03 EBITDA £295m 13% £1,023m 1%
– 61% of broadband customers now on fibre
Capex £92m 28% £291m 23%
– BT Sport continued to deliver strong viewing figures across
all platforms, up 19% YoY Fibre share of Group retail broadband base
65%
• EBITDA up 13%, driven by revenue growth partially offset by
60%
higher network costs from an increase in fibre customers
55%
• Further investments in customer experience: 50%
– e.g. Premier League continuing on BT Sport for three more 45%
years from the 19/20 season 40%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015/16
15/16 2016/17
16/17 2017/18
17/18
1 Average Revenue Per User
2 Revenue Generating Units
3 © British Telecommunications plc 2018
Performance in 17/18
EE – sixth consecutive quarter of revenue growth
• Sixth consecutive quarter of revenue growth: Q4 FY
Change Change
– postpaid up 6%; prepaid down 10% 17/18 17/18
• EBITDA up 37%, recovering strongly as forecast:
Revenue £1,320m 5% £5,294m 4%
– quarterly trends driven by seasonal customer behaviour
– EBITDA up 17% over 17/18 EBITDA £433m 37% £1,353m 17%
• Group mobile base 29.6m
Capex £178m 9% £628m 2%
– 95,000 postpaid adds, group base now 17.6m
– 433,000 prepaid decline, group base now 5.5m EE Revenue YoY
– postpaid churn 1.2%, continuing to reflect loyalty 6%
• Investing to improve customer experience: 4%
– 4G geographic coverage 90% of the UK 2%
– named the leading mobile network for the ninth 0%
consecutive time in latest RootMetrics survey -2%
– introduced in-store and call centre video-calling to connect -4%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
customers with technical experts
FY16/17
2016/17 FY 17/18
2017/18
4 © British Telecommunications plc 2018
Market context and current positioning
The new Consumer unit vision
The brand plans
Transformation and finance
Wrap-up
5 © British Telecommunications plc 2018
Market context and current positioning Andy Haworth, MD Content & Strategy
UK consumer market
Opportunities for growth in a mature market
Mature market with high penetration of Growth opportunity from low
telecommunications and TV services penetration of converged products
UK market penetration and BT Group share (%, 2017) % quad-play penetration
Home phone Broadband
38% 36%
share share
82% 88%
Opportunity
Mobile Digital TV to increase
RGUs1
28% 9%
share pay-TV
share
96% 94%
Market penetration BT Group volume share of the market
1 Revenue Generating Units
7 © British Telecommunications plc 2018
UK consumer market
Dynamic marketplace creates opportunity for differentiation
Rapid growth in data Explosion of devices SVoD goes mainstream Importance of handset
37% >10 c.30% c.50%
growth in data devices on average connected growth in SVoD 1 services see value from fast replacement
usage over the last year to the home network such as Netflix and Amazon or repair of handset
26% 23% 60% 15%
growth in public Wi-Fi increase in the sales of of traffic on fixed networks keeping their phones for
usage over the last year Smart Home devices in 2018 driven by video content 3+ years and increasing
High capacity Seamless and Integrated content Transformed handset
ubiquitous networks reliable connectivity experience experience
1 Subscription Video on Demand
8 © British Telecommunications plc 2018
BT Group focus
Looking to the future
Deliver Invest in Transform Drive sustainable
differentiated integrated our
growth
customer network operating
experiences leadership model in value
9 © British Telecommunications plc 2018
Consumer unit positioning
Introduction to the new Consumer unit and multi-brand operating model
Bringing together EE and BT Consumer from 1 April 2018 with three distinct brands
38% 35% 14m >1bn
of BT Group revenue of BT Group EBITDA homes with yearly customer
in Q4 17/18 in Q4 17/18 30m relationships touchpoints
Focus for today No change in strategy
Home-centric Mobile-centric Value-focus
#1 for superfast fibre #1 UK mobile brand #1 value brand
Convergence ready #1 UK mobile network High NPS
Premium content #1 Best Big Company to Work For Broadband and mobile
10 © British Telecommunications plc 2018Consumer unit positioning
New Consumer unit is well placed to succeed
The Consumer unit is well-placed to drive convergence and accelerate transformation
Integrated
network
leadership
The best 4G Access to largest Unrivalled public Network showcased
network & 5G Superfast network & Wi-Fi with c6m through premium
spectrum secured Ultrafast rolling out hotspots content
Differentiated
customer
experiences
Extensive retail Multi-skilled agents Advanced digital Highly motivated
estate with >620 across all UK & self-serve and engaged
stores tools workforce
11 © British Telecommunications plc 2018Consumer unit positioning
A focus on value to create oxygen for differentiation and drive sustainable growth
We have already started to prioritise value over volume in the last 12 months
Mobile TV Broadband Mobile
£5 £7.50 £0 £3.50 27% £5 £6
entry level price plans with entry level price for increase in the entry level price
500MB usage for TV bundle with BT Sport base ARPU 1 for 30-day contract
BT Broadband homes and AMC with 500MB usage
1 Average Revenue Per User
12 © British Telecommunications plc 2018The new Consumer unit vision Marc Allera, CEO 13 © British Telecommunications plc 2018
New Consumer unit
Our strategy
Our To use the power of communications to make a better world
purpose
Our
Become the UK market leader in convergence, to drive sustainable growth in value
vision
1 2 3 4 5 6
Personalisation
Three One smart Best personal Best for Open, super-
Our strategy through data
great brands network and local service partnerships aggregator TV
& enablers and digital
Best place to work
Our Personal Simple Brilliant
values
14 © British Telecommunications plc 2018New Consumer unit
Announcements we have made this week in line with our strategy
1 2 3 4 5 6
Personalisation
Three One smart Best personal Best for Open, super
through data
great brands network and local service partnerships aggregator TV
and digital
95% of customers Creation of the
Launch BT Plus >98% time on 4G 360O customer view Now TV on BT TV
within 20 mins of a store partnership unit
100% UK call centres
Reposition BT brand Accelerate Ultrafast Re-launch BT.com Nest & Hive partnerships Enhanced BT Sport for EE
for all brands
Amazon Video
Data sharing plans Integrate BT Wi-Fi BT return to high street Remote virtual support Smart home assistants Amazon Video on BT TV
on BT TV
New OTT 1 TV service
Stay connected promise New converged hub New service in the home Plusnet self-service app Buy devices on EE plans
from EE
1 Over-The-Top
15 © British Telecommunications plc 2018Become the UK market leader in convergence, to drive sustainable growth in value
We have launched our vision for convergence
Our definition of convergence
Bringing together our best networks,
products and services
ARPU Churn RGUs
ARPU Churn NPS 1 RGUs
1 Net Promoter Score
16 © British Telecommunications plc 2018Become the UK market leader in convergence, to drive sustainable growth in value
We have started a journey towards services led convergence
Tomorrow
Yesterday Today
Services led convergence
Simple bundles Converged bundles
Any device, anywhere
Mobile Mobile Voice
+ Home Phone + Home Phone Data
+
+ Broadband +
+ Broadband Content
+ Television + Television
17 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
We use three differentiated brands to maximise our reach in the market
Our brands will target specific segments and have a differentiated position
Target customer segment
Focus on reliability and peace of mind
Require connectivity and entertainment for the whole family
Home-centric Value easy access to support whenever and wherever required
Digitally savvy, younger audience
Attracted by flexibility, speed and innovation
Mobile-centric Mobile handset is their most important device
Value seekers not prepared to pay a premium price
Less interested in pay-TV and convergence
Value-focus Seek good, honest service
18 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
A clear strategy for each market segment by brand
UK households split by relationship with Consumer brands Our priorities
1
Up-sell to homes with an
existing relationship
Up-sell through 5m 13m
Home-centric
(BT homes (homes with no Full toolkit to attract
with no EE relationship with
convergence relationship) + high-value customers 2
Consumer brands)
Minimise cannibalisation
for homes with BT &
3m EE services
Minimise (homes with a
cannibalisation relationship with 5m Up-sell through
and optimise base both BT & EE) + (EE homes with Mobile-centric
no BT relationship) + convergence 3
1m Identify ways to attract
high-value new customers
Maintain a position in the value segment
+ Excludes EE Pay as you Go customers
19 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
We have a plan to create one smart network
Today: Tomorrow:
Three different networks One smart network
Superfast 4G Wi-Fi
broadband network on the go Wi-Fi
on the go Always connected
Always optimised
Mobile Fixed
Different usage allowances networks networks Always affordable
Complex to switch between networks
Inconsistent coverage and speed
Increase mobile Introduce IP 1 Voice Continue to refarm 3G Build a new
‘Time on 4G’ to 98% for our customers spectrum to 4G & 5G core network
2018 2022
One, smart,
digital network
Extend IMS2 capabilities to Switch on our Create a seamless Launch a converged
all our BT & EE customers 5G network experience for public Wi-Fi hardware portfolio
1 Internet Protocol
2 IP Multimedia Subsystem
20 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
We will offer the most personal and local service in the UK
All call centres based in the UK from 2020 Improving digital experiences for all brands
BT call centre NPS
1.4bn 10.7m
visits to digital 90 day active EE and BT
estate per year customers across digital
Whilst improving
operational efficiencies
88% EE #1
of service interactions for self-serve adoption
Offshore Onshore via digital in Western Europe
The most personal service in the UK A retail store within 20 minutes for 95% of the population
Service in the customer’s home Key metrics for retail operations
558 650
stores stores
Extending our service Operational costs
through partnerships
Value per store
15/16 18/19
21 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
Our retail stores will showcase our best local experience
To drive convergence For BT customers For EE customers
All services demonstration Older demographic seeking Immediate handset screen repair
and hand holding face to face interaction and old devices trade in store
Maximise wallet Early ‘BT in store’ trials show Improvement in ARPU
share in the home significant broadband uplift compared to digital channels
22 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
We will evolve our digital capabilities to target segments effectively
Using digital and data to optimise marketing and segment the base
Services upsell Cross-brand dilution
and cross-sell mitigation
Digital
transformation
Cost Customer
efficiency satisfaction
360O multi-brand customer >1bn tailored customer Fully personalised and Centres of excellence with
view across our brands contacts each year authenticated online offers AI 1 and machine learning
1 Artificial Intelligence
23 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
Our scale creates a unique platform for partnerships
We have created a new Consumer Partnership Unit
90% 30m 14m >620
geographic 4G coverage customer relationships household relationships retail stores
For our partners For our customers
Launch products with an unrivalled scale of marketing Access to the most innovative products and services
Unlock innovation by working with an R&D leader Wide choice of products and services providers
Simplify service and distribution in retail & digital stores Integrated experience with excellent support
Accelerate go-to-market for new services Seamless experience through EE or BT connectivity
24 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
Partnerships will broaden choice for our TV customers
Today: Tomorrow:
Lack of key pay-TV Embracing content trends and partnership opportunities,
content to drive switching to offer an unrivalled choice of content across the pay-TV providers
All the must-have content
SVoD providers
Primary central set-top-box experience
All premium Sky content Multi-screen, multi-platform access
Home-
centric
OTT and digital first
Fully flexible mobile & app centric
Mobile-
Pay channels centric
25 © British Telecommunications plc 2018Three One smart Best personal Personalisation Best for Open, super-
great brands network and local service through digital partnerships aggregator TV
BT Sport focus is to grow reach through broader distribution and OTT proposition
Initial launch focused on driving Unlocked BT Sport monetisation Unlocking OTT opportunity
significant scale and retain broadband base and increased engagement to reach most homes in the UK
Reached 5m customer base All BT Sport customers are now Enabling big screen access for EE customers
paying for their package
Strong viewing and engagement BT Sport will be available on additional
with record growth through digital platforms through an OTT proposition
YoY viewing growth
19% 40% >5m
incremental households we can
on TV on apps and online
reach with OTT propositions
26 © British Telecommunications plc 2018New Consumer unit
Summary of our new Consumer strategy
We will become the UK market leader in convergence, to drive sustainable growth in value
1 2 3 4 5 6
Personalisation
Three One smart Best personal and Best for Open, super
through data
great brands network local service partnerships aggregator TV
and digital
ARPU Churn NPS RGUs
27 © British Telecommunications plc 2018[PLACEHOLDER FOR BT BRAND TV ADVERT] 28 © British Telecommunications plc 2018
Pete Oliver
MD, BT Marketing & Sales
BT brand plans
Broadband | Mobile | TV | Sport
29 © British Telecommunications plc 2018BT brand positioning
High value, home-centric customers with propositions that give them peace of mind
We make life simple for customers - by bringing
together the best connection and entertainment
5m 13m
(BT homes (homes with no
with no EE relationship with
relationship) +
Home-centric
Consumer brands)
Target customer segment characteristics 3m
(homes with a
Focus on reliability and peace of mind relationship with 5m
both BT & EE) + (EE homes with
Require connectivity and entertainment for the whole family no BT relationship) +
Value easy access to support whenever and wherever required
1m
+ Excludes EE Pay as you Go customers
30 © British Telecommunications plc 2018BT brand plan
We will focus on speed, reliability, entertainment and service for families
Home-centric convergence
Fast, reliable Built for
connection the whole
everywhere family
Entertainment Personal &
for everyone local support
Broadband | Mobile | TV | Sport
31 © British Telecommunications plc 2018Home-centric convergence – BT Plus
We will lead the market with a new convergence category
New BT Plus
Home-centric convergence
Fast, reliable Built for
Fibre & connection
everywhere
the whole
family
4G together.
Our best connection in
and out of the home
Entertainment Personal &
for everyone local support
• BT Plus gives customers the best of BT
• Launch proposition brings fibre and 4G together
• New sales and marketing approach
32 © British Telecommunications plc 2018Home-centric convergence – BT Plus
BT Plus brings together the best fibre and 4G connectivity experiences
Speed - Fastest fibre and 4G speeds
Our best connection
Reliability - Ultrafast speed guarantee Add the best entertainment
to the best BT Plus connection
Data – Unlimited fixed & double mobile data
Best for the whole family
Family SIM - Flexible family add-ons
Keep connected promise
Backed by our best service
Dedicated UK & Ireland support
Execution designed to drive loyalty and value enrichment
Premium Existing Value accretive
price point customer focus retention
33 © British Telecommunications plc 2018Home-centric convergence - BT Plus
BT Plus will always have the best of everything
BT Plus BT Plus BT Plus
1.0 2.0 3.0
Fastest fibre and 4G
Mobile data boost
H2 H1
Ultrafast speed guarantee
18/19 19/20
Keep connected promise
Family SIM on mobile
UK & Ireland support
34 © British Telecommunications plc 2018The best entertainment
Bringing the best entertainment to our BT TV and BT Sport customers
Home-centric convergence
Fast, reliable Built for
connection the whole
everywhere family
Entertainment Personal &
for everyone local support
35 © British Telecommunications plc 2018The best entertainment
Making it simple to discover and watch the best entertainment
Bringing together all the best Making it simple for customers to find,
entertainment to watch in one place Be There watch & pay for the best entertainment
From
early
2019
Single search engine
across multiple entertainment services
Integrated user interface
From
June providing a consistent experience
2018
One easy bill
including subscriptions like Netflix
Catch up, record and stream
at home and on the go
Available
today
One help desk
offering personal support
36 © British Telecommunications plc 2018The best entertainment
Improving the sport portfolio and making it available in more places
Our biggest ever season bringing more Making BT Sport available for our
top live sport to BT Sport customers Be There customers to watch in more places Be There
Football Other sports Multi-platform distribution
New platforms coming soon…
42 matches live & Home of
exclusive European rugby
Enabling big screen access for EE customers
Double header
nights
Available on traditional pay-TV platforms
More live Most ever
matches races
37 © British Telecommunications plc 2018Making life simple for customers
Personal and local support for our customers
Home-centric convergence
Voice • 100% UK & Ireland calls
Personal • Local call routing Fast, reliable Built for
& local • New advisor desktop connection the whole
support • Personal sales everywhere family
Retail • BT presence in every EE store
Return to • Premium BT display
the high • Nationwide coverage
street • 4,000 trained staff
Entertainment Personal &
for everyone local support
• New BT.com homepage
Digital • Personalised upgrade offers
Easy to • Contextual service experiences
self-serve
• Prioritised investment in digital
38 © British Telecommunications plc 2018BT brand plan – summary
Home-centric convergence with a focus on high value, loyal customers
Home-centric convergence
Fast, reliable Built for
New connection the whole New
BT Plus everywhere family BT Plus
Entertainment Personal & Local support
for everyone local support
Retail return
Self-serve
39 © British Telecommunications plc 2018EE BRAND PLAN MAX TAYLOR - MD EE MARKETING
EE BRAND POSITIONING
#1 MOBILE BRAND
#1 NETWORK
#1 BEST PLACE TO WORK 5m
(BT homes
13m
(homes with no
with no EE relationship with
relationship) + Consumer brands)
3m
(homes with a
Target customer segment characteristics relationship with 5m
both BT & EE) + (EE homes with
Digitally savvy, younger audience no BT relationship) +
Attracted by flexibility, speed & innovation
Mobile handset is their most important device 1m
+ Excludes EE Pay as you Go customers
41 © British Telecommunications plc 2018EE – OUR AMBITION
CREATE THE #1 MOBILE-CENTRIC CONVERGENCE BRAND
Mobile-centric convergence
Mobile portfolio Mobile-centric
for all the family broadband
Smart TV and
Home content
#1 for Handset
Personal and local service
42 © British Telecommunications plc 2018EE – OUR PORTFOLIO
THE WIDEST CHOICE OF
MOBILE SOLUTIONS
FOR ALL THE FAMILY
Mobile-centric
convergence
Mobile portfolio Mobile-centric
New family proposition for all the family broadband
• Unique giftable data
• Multi-Sim benefits
• Family controls app
New Flex plans
Smart TV
Home and content
“absolutely love how you can
gift data on @EE. Great idea Personal and local service
when you have two teenagers”
43 © British Telecommunications plc 2018EE – OUR PORTFOLIO
FAST BROADBAND
SOLUTIONS IN MORE PLACES
Mobile-centric
convergence
Broad product range
• 300Mbps fibre
• 4GEE Home router Mobile portfolio Mobile-centric
and antenna for all the family broadband
Best call centre service
• EE remote support
• EE virtual assistant app
• Converged MyEE app
Converged benefits Smart TV
Home and content
• Up to 20GB data boost
• 4GEE backup and Home Move
Hybrid broadband technology Personal and local service
44 © British Telecommunications plc 2018[PLACEHOLDER FOR HYBRID BROADBAND TECHNOLOGY VIDEO] 45 © British Telecommunications plc 2018
EE – OUR PORTFOLIO
NEW SMART
HOME CATEGORY
Mobile-centric
Convergence
Curated product range
of market leaders
• Nest, Hive and Mobile portfolio Mobile-centric
Honeywell ranges for all the family broadband
• Voice assistants
Add to Plan and charge to bill
Help and support
• New EE Smart Home Helpline
• Retail experts
Smart TV
Home and content
Personal and local service
46 © British Telecommunications plc 2018EE – OUR PORTFOLIO
FLEXIBLE TV AND CONTENT
Mobile-centric
convergence
New TV App (coming Q3)
Mobile portfolio Mobile-centric
for all the family broadband
New BT Sport proposition
(launch July)
• 30 day flexibility
• Casting and zero rating options
• Charge to bill
Smart TV
Home and content
Personal and local service
47 © British Telecommunications plc 2018EE – OUR PORTFOLIO
OUR PERSONAL AND LOCAL SERVICE
Retail Contact Centres Digital
620+ stores #1 UK call centres 10.8m registered
Multiple store formats Welsh speaking self-serve base
4.5* App
INNOVATION: INNOVATION: INNOVATION:
Same day repairs Remote Support and Virtual Assistant Superfast same-day delivery
Trade-in Click to call / chat and personalised set-up
48 © British Telecommunications plc 2018EE – OUR COMMUNICATION “WHO SAYS YOU CAN’T?” 49 © British Telecommunications plc 2018
EE – SUMMARY
CREATE THE #1 MOBILE-CENTRIC CONVERGENCE BRAND
Mobile-centric convergence
Mobile portfolio Mobile-centric
for all the family broadband
Smart TV and
Home content
#1 for Handset
Personal and local service
50 © British Telecommunications plc 2018Transformation and finance Stephen Harris, CFO
Transformation and finance
A strong foundation for the new Consumer
Strong profitable revenue growth With cost efficiencies to drive EBITDA
Consumer revenue (£m) Consumer EBITDA (£m)
BT & Plusnet BT & Plusnet
EE EE
+337
+3%
£10,360m +207
+354 +10%
+4%
+28 £2,376m
£10,024m +1%
£2,141m £2,169m
£9,670m
+2.7%
+7.1% +1.1%
-4.0%
+4.0%
+0.6% +17.0%
+6.5%
15/16 16/17 17/18 15/16 16/17 17/18
52 © British Telecommunications plc 2018Transformation and finance
Consumer has delivered significant synergies and cost reductions over the past 2 years
Key cost efficiency and synergy programmes
22% of EE customers take the top tier tariff 15/16 underlying OpEx
(with 42% higher ARPU), a key driver for this is the
Cross-sell opportunities inclusion of BT Sport Digital driven PTC 1
being realised
BT Broadband and BT TV will be available in all
>620 EE stores by the end of May 2018 Service efficiencies
Media buying
Retail efficiencies
EE indirect costs fell 17% over two years following
Significant cost acquisition Management reductions
reduction achieved
Retail footprint increases by 30 stores whilst
17/18 underlying OpEx
reducing net retail costs by 6%
1 Propensity To Call
53 © British Telecommunications plc 2018Transformation and finance
We have efficiently retained spectrum leadership, underpinning future differentiation
We have spectrum leadership in the UK
Usable spectrum holdings by operator – May 2018 (MHz)
4G spectrum 5G spectrum Total
auction auction 295
paid
(March 2013) (March 2018)
40
15 233
BT/EE £775m £304m £1,079m 226
50
100 84
166
£1,169m 20
Vodafone £791m £378m 40
+ L-Band 40
40 60
30 40
12 20
O2 £550m £524m £1,074m 29
20 12
90
30
35 35
20
10 20 20 10
£389m
3UK £225m £164m BT/EE Vodafone O2 3UK
+ L-Band
Share 32% 25% 18% 25%
900MHz 1800MHz 2300MHz 2600MHz 3.6-3.8GHz
800MHz 1500MHz 2100MHz 2600MHz 3.4-3.6GHz
54 © British Telecommunications plc 2018Transformation and finance
BT Sport content costs are recovered through several revenue sources
Sports rights monetisation (18/19 season)
1
Chart not to scale and for illustrative purposes only Premier League Premier League rights extended
rights to 2022 with no cost inflation
Direct Commercial & Linked core
Wholesale Distribution 2
Costs subscription advertising product Other rights and 97% of current rights portfolio
revenue revenue
revenue revenue revenue production contracted to 20/21 season
7
3
6 Direct All BT Sport subscribers
1
subscription now on paid products
Premier
League £(320)m 4
rights 5 Commercial & Widest distribution among UK pubs & clubs
advertising of all premium sports channels
5
Virgin Media wholesale deal extended,
Wholesale
UEFA 4 guaranteeing associated revenues
£(394)m
rights
6
NPS +24% for BT Sport customers
Core products
vs. non-BT Sport customers
3
2
Other 7
Distribution BT Sport to be made more widely available,
costs
opportunity including to more EE mobile subscribers
55 © British Telecommunications plc 2018Transformation and finance
We are on a journey to simplify and streamline our business
Today April 2019
Leadership team with Consumer3 year New target Single, agile concept
aligned objectives strategic plan operating model to market process
Journey towards a simplified and streamlined business
Further 8-9% of Group
Single financial and Single Common system stack
integration synergies to be
external KPIs investment roadmap and shared capabilities
delivered in 18/19
56 © British Telecommunications plc 2018Transformation and finance
New FY 17/18 Consumer financials and KPIs with more transparency
* Key Performance Indicators under IAS18
57 © British Telecommunications plc 2018Transformation and finance
New Consumer is a major contributor to the BT Group
Consumer revenue was up 4% Q4 YoY Consumer EBITDA was up 26% Q4 YoY
Q4 17/18 revenue (%) Q4 17/18 EBITDA (%)
Consumer Enterprise Consumer Enterprise
38% 24% 35% 27%
14% 17%
19% 17% BT Consumer
Business & Business &
BT Consumer Public Sector
Public Sector
7%
Wholesale
10%
& Ventures Wholesale
21% & Ventures
19% EE
EE 18% 7%
Global Services
Global Services
19% 31%
Openreach
Openreach
58 © British Telecommunications plc 2018Wrap-up Marc Allera, CEO 59 © British Telecommunications plc 2018
Wrap-up
Summary of our new Consumer strategy
We will become the UK market leader in convergence, to drive sustainable growth in value
1 2 3 4 5 6
Personalisation
Three One smart Best personal and Best for Open, super
through data
great brands network local service partnerships aggregator TV
and digital
ARPU Churn NPS RGUs
60 © British Telecommunications plc 2018You can also read
