Key performance indicators
The Board and the Executive Committee use a number of key performance indicators(1) (‘KPIs’) to monitor Group and regional performance against budgets and forecasts as well as to measure progress against the Group’s strategic objectives.
| KPI | Purpose of KPI | 2009 | 2008 | 2007 |
|---|---|---|---|---|
| Free cash flow before licence and spectrum payments(2) | Provides an evaluation of the cash generated by the Group’s operations and available for reinvestment, shareholder returns or debt reduction. Also used in determining management’s remuneration. | £5,722m | £5,580m | £6,343m |
| Service revenue and related organic growth(2) | Measure of the Group’s success in growing ongoing revenue streams. Also used in determining management’s remuneration. | £38,294m (0.3)% |
£33,042m 4.3% |
£28,871m 4.7% |
| Data revenue and related organic growth(2) | Data revenue is expected to be a key driver of the future growth of the business. | £3,046m 25.9% |
£2,119m 39.0% |
£1,405m 30.7% |
| Capital expenditure | Measure of the Group’s investment in capital expenditure to deliver services to customers. | £5,909m | £5,075m | £4,208m |
| EBITDA and related organic growth(2) | Measure used by Group management to monitor performance at a segment level. | £14,490m (3.5)% | £13,178m 2.6% | £11,960m 0.2% |
| Customer delight index | Measure of customer satisfaction across the Group’s controlled markets and its jointly controlled market in Italy. Also used in determining management’s remuneration. | 72.9 | 73.1 | 70.6 |
| Adjusted operating profit and related organic growth(2) | Measure used for the assessment of operating performance, including the results of associated undertakings. Also used in determining management’s remuneration. | £11,757m 2.0% |
£10,075m 5.7% |
£9,531m 4.2% |
| Proportionate mobile customers(1) | Customers are a key driver of revenue growth in all operating companies in which the Group has an equity interest. | 302.6m | 260.5m | 206.4m |
| Proportionate mobile customer net additions(1) | Measure of the Group’s success at attracting new and retaining existing customers. | 33.6m | 39.5m | 28.2m |
| Voice usage (in minutes) | Voice usage is an important driver of revenue growth, especially given continuing price reductions in the competitive markets in which the Group operates. | 548.4bn | 427.9bn | 245.0bn |
Notes:
- (1)
- Definition of key terms is provided here.
- (2)
- See ‘Non-GAAP information’ for further details on the use of non-GAAP measures.