BT’S OPERATIONS in the Republic generated a pretax profit of €38.7 million in the year to March 31st, 2011, up from €16.5 million the previous year.

This was despite revenues falling 4 per cent from €466 million in the 2010 financial year to €446 million last year.

“It’s good that BT in the Republic of Ireland is a net contributor to the group,” said Colm O’Neill, chief executive of BT in Ireland. “As part of a large global group, that’s very important as it drives investment.”

BT has “stepped up investment substantially” in its Irish network over the last two years, said Mr O’Neill.

BT reported results on an all-Ireland basis last May, which showed revenues fell by 3 per cent to £749.8 million in the year to the end of March 2011.

The figures for the Republic are included in accounts for BT Communications Ireland Limited (BTCIL) that have just been filed at the Companies Office and have been seen by The Irish Times.

The accounts state the firm has made “good progress in the business and government sectors”.

Conceding that “BT didn’t do well in the past” in winning government contracts, Mr O’Neill said this was because it “didn’t have what wanted to buy”. He cited BT’s operation of the 999 emergency call answering service and a recent contract win to build a network for the Department of Social Protection as examples of how it realigned its public sector business.

Although it no longer sells telecoms services directly to consumers, BT is a major player in the wholesale market. The other main part of the business is the provision of IT services.

“We have exited unprofitable businesses,” said Mr O’Neill. “If we can’t make money on a contract we don’t do it.”

This is the first year where all BT’s activities here have been consolidated in a single entity after the business of two other BT subsidiaries, BT Net Ireland and BT Global Communications Ireland, were transferred to BTCIL.

“We have been looking to simplify the business in all ways including our corporate structures,” said Mr O’Neill.

The group employed an average of 809 staff last year, compared to 863 in the 2010 financial year. Mr O’Neill said staff numbers would be “flat or moderately up” this year.

BT has retained losses of over €1 billion since it entered the Irish market with the €290 million purchase of Esat Telecom in 2000.