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 our strategic objectives. There are a number of other KPIs that are used to monitor the results of individual operating companies but for which no Group KPI is calculated including revenue market share and EBITDA market share.
| KPI | Purpose of KPI | 2010 | 2009 | 2008 | ||||
|---|---|---|---|---|---|---|---|---|
| Free cash flow(2) | Provides an evaluation of the cash generated by our operations and available for reinvestment, shareholder returns or debt reduction. Also used in determining management’s remuneration. | £7,241m | £5,722m | £5,580m | ||||
| Service revenue and related organic growth(2) | Measure of our success in growing ongoing revenue streams. Also used in determining management’s remuneration. | £41,719m (1.6)% | £38,294m (0.3)% | £33,042m 4.3% | ||||
| Data revenue and related organic growth(2) | Data revenue is expected to be a key driver of the future growth of the business. | £4,051m 19.3% | £3,046m 25.9% | £2,119m 39.0% | ||||
| Fixed line revenue and related organic growth(2) | Measure of success in offering total communications services | £3,289m 7.9% | £2,727m 2.1% | £1,874m 6.2% | ||||
| Capital expenditure | Measure of our investment in capital expenditure to deliver services to customers. | £6,192m | £5,909m | £5,075m | ||||
| EBITDA and related organic growth(2) | Measure used by management to monitor performance at a segment level. | £14,735m (7.4)% | £14,490m (3.5)% | £13,178m 2.6% | ||||
| Customer delight index | Measure of customer satisfaction across our controlled markets and jointly controlled market in Italy. Also used in determining management’s remuneration. | 73.1 | 72.9 | 73.1 | ||||
| Net promoter score (‘NPS’) | At the end of the 2010 financial year, most markets migrated to NPS, which is also used to monitor customer satisfaction. In relation to those subsidiaries that have migrated, NPS will be incorporated into the competitive performance assessment used in determining management’s remuneration. | |||||||
| Adjusted operating profit and related organic growth(2) | Measure used for the assessment of operating performance, including the results of associates. Also used in determining management’s remuneration. | £11,466m (7.0)% | £11,757m 2.0% | £10,075m 5.7% | ||||
| Proportionate mobile customers(1) | Customers are a key driver of revenue growth in all operating companies in which we have an equity interest. | 341.1m | 302.6m | 260.5m | ||||
| Proportionate mobile customer net additions(1) | Measure of our success at attracting new and retaining existing customers. | 34.6m | 33.6m | 39.5m | ||||
| Voice usage (in minutes) | Voice usage is an important driver of revenue growth, especially given continuing price reductions in the competitive markets in which we operate. | 686.6bn | 548.4bn | 427.9bn |
- Notes:
- (1)
- Definition of the key terms is provided here.
- (2)
- See “Non-GAAP information” for further details on the use of non-GAAP measures.
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