BT profits increase for 11th quarter in a row

Despite turnover from traditional business continuing to decline, the telecoms giant is on track for another bumper year

Telecoms giant BT has attributed yet another quarter of growth to ‘new wave’ business such as broadband and networked IT services.

In its second quarter and half year 2006 results ended 30 September 2006, turnover stood at £4.9bn compared to £4.7bn in the year ago quarter representing an increase of four per cent. Pre-tax profit increased by 12 per cent to £665m compared to £596m in 2005.

For the half year results, turnover stood at £9.8bn compared to £9.5bn in the same period a year ago, representing a three per cent increase. Half year pre-tax profitwas £1.3bn compared to £1.1bn – a rise of 17 per cent.

Ben Verwaayen, chief executive said in a statement: “These second quarter results show another strong team performance with every part of the business playing its part. We have also announced today that BT Retail has passed three million broadband connections in a fast growing market.

“Revenue has increase for eleven consecutive quarters and earnings per share were up 13 per cent. The results underpin our confidence in our ability to grow revenue, earnings per share and dividends this year.”