BT enjoys 13% jump in pre-tax profits

Telecoms giant BT has reported a year-on-year increase of 13 per cent in pre-tax profits to 496 million pounds for the quarter ended September.

The number of BT’s broadband users jumped 33 per cent to settle at 253,000 in the three months to the end of September.

BT Vision gained 24,000 new customers in the concerned quarter, which pushed the total up to 520,000.

Commenting on the figures, BT CEO Ian Livingston said, “We have made significant progress in improving profitability and cash flow, enabling us to invest in building the foundations for revenue growth in 2012/13.”

However, Sky Sports service, which was launched in the month of August, could so far attracted only 50,000 customers, while traditional landline services failed to attract considerable number of customers. Furthermore, revenue at BT’s Global service division slipped 2 per cent due to fall in fixed-line calls.

Nevertheless the results are better than expected. The better results encouraged the telecoms giant to lift its forecast for full-year underlying earnings from 5.6 billion pounds to 5.8 billion pounds.