BT announces £3bn profits growth

NEWS BT released interim results today showing turnover up 19 per cent to £10.3bn for the six months to 30 September. Profits were also up 8.6 per cent to £3.3bn over the same period, the previous year. BT noted that this growth was despite the previous year's bolstered figures - led by the £1.1bn sale of MCI Communications. BT also reported that revenues in its mobile arm, BT Cellnet, were up by 71 per cent to £1.2bn. Growth was not as strong for UK national call revenues, which BT claimed was the result of continued price reduction programmes. The number of national calls rose by 11 per cent over the period, while turnover rose by just 2.4 per cent. BT chairman, Ian Vallance, said BT was still achieving good growth despite significant costs involved in acquiring new businesses and customers. He warned BT faced "increasing competition due to globalisation". BT's share price rose on the news, and closed 9.3 per cent up at 1254p.