BT profits continue to slide

NEWS BT has sliced over £10bn off its debt mountain this year, though its first quarter profits have fallen. In the quarter ending 30 June, profits dropped by £186m to £505m from a profit of £637m in the same period last year. BT chairman Sir Christopher Bland said in a statement that BT is "ahead of schedule" in meeting its debt reductions but admitted the results were "satisfactory". In March the debt was reported to have reached £27.9bn. However, Bland said the figure has since dropped to £17.5bn, the main reason being BT's success in the £5.9bn rights issue in June. Bland blamed the high interest costs of BT's debt, which jumped from £235m to £474m, for the quarter's poor earnings. Shares in the company fell more than two per cent to 444p in early trading in London. For related stories, see
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