TV business shines for BT in fiscal 2014
DetailsEditor | 07 May 2015
In a mixed year in which overall revenues slipped by as much as EBITDA rose, TV was a definite bright spot for UK telco BT.
After a period of prolonged investment in the business line — specifically acquiring exclusive, premium content most notably Premier League and Champions League football — the company ended the year with BT Sport TV channels in more than 5.2 million homes.
The strength of the TV line, along with that of BT's broadband offering, was key in driving revenue in the BT Consumer division up 7% annually for the year ended 31 March 2015. BT Sport was heralded for contributing to both top and bottom-line growth.
For the fourth quarter of the financial year, revenue was up 3%, with a 10% increase in broadband and TV revenue flat. Consumer ARPU increased 6% to £415. For the year, revenue was up 7% with a 16% increase in broadband and TV revenue.
The aggressive content acquisition strategy was reflected in capital expenditure increasing 47% in the quarter, but actually falling 2% for the year. Operating cash flow decreased £9 million as the higher capital expenditure and a £29 million deposit for the new FA Premier League rights offset the growth in EBITDA.
For the full year operating cash flow was up £341 million, or 72%, largely reflecting stronger EBITDA and the deposit in the previous financial year of around £60 million for the UEFA broadcast rights.