BT HAS reported a rise of 18 per cent in full-year pretax earnings for its all-Ireland operations, despite the difficult economic climate. BT as a whole announced losses of £134 million for the year to the end of March and plans to cut 15,000 jobs during the year, primarily at its global services division, where costs have spiralled.

The reduction in numbers would not impact the Irish operations, according to BT Ireland chief executive Chris Clark.

BT does not break out a specific profit figure for its Irish operations, but said revenues, on a constant currency basis, were down 4 per cent to £800.8 million.

Mr Clark said the decline in revenue was attributable to the general economic conditions and a re-organisation of BT’s business which saw it move out of low-margin businesses such as selling technology hardware.

During the year, gross margin at BT Ireland was up by 9 per cent and it signed three significant five-year deals. Mobile operator Telefónica O2 Ireland will outsource part of its network services to BT, and the Department of Communications has awarded it the contract to provide the emergency “999” service.

BT will also be involved in the National Broadband scheme, with 3 Ireland sub-contracting the delivery of the radio site infrastructure and backhaul transmission to support the network rollout to the telecoms firm. Mr Clark said the three contracts had created 100 new jobs, but due to the elimination of certain areas of business, there was no net gain. BT employs 1,000 staff in the Republic and 2,500 in the North.

Consumer business accounts for just 6 per cent of revenues but delivered a “strong set of results”, Mr Clark said. He said it was focusing in the Republic on areas where it had put its own equipment in Eircom exchanges and so can “offer differentiated services”.