BT has reported a 61 per cent leap in first quarter pre-tax profit despite a rise in turnover of only 2 per cent as growth in the depressed sector remains flat.
"Overall turnover growth of two percent was slower than expected with no growth in sales to other telecoms operators. However the improved efficiency in our business delivered strong profit growth," chief executive Mr Ben Verwaayen said today.
Pre-tax profit before exceptionals rose to £322 million sterling in the quarter ended in June, on turnover of £4.587 billion. Net debt fell £304 million to £13.4 billion.
In the first quarter of BT's new focus on selling high-speed Internet access into households, the company said it had signed up more than 300,000 broadband end users.
Facing stiff competition in its traditional market for voice calls, BT halved the price of broadband access in April to spur demand as it tried to build a mass market for data-rich entertainment and information over the Internet.
