BT says that mobile and Internet businesses are driving profits

BT says that mobile and Internet businesses are driving profits
Richard Wilson
BT says it is getting to grips with the growth of its mobile communications and Internet data transmission businesses as it reports a 9.5 per cent rise in operating profit for the last 12 months.
“Our profit improvement was turnover led, benefiting from the communications technologies of the future such as mobile, high speed data and the Internet,” said BT chairman Sir Iain Vallance.
Vallance also indicated that the company was no nearer a full takeover of its Cellnet mobile phone joint venture with Securicor than it was a year ago. BT owns 60 per and Securicor 40 per cent of Cellnet, the UK’s second largest mobile phone operator, which was recently renamed BT Cellnet.
BT’s total turnover is up by 13.6 per cent at ?18bn in the year and operating profit has increased by 9.5 per cent before exceptional items to ?3.5bn.
Full pre-tax profit was ?4.3bn, which included an exceptional income mainly relating to the sale of the group’s investment in MCI Communications Corporation in September 1998.


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