BT reports 39% profit increase

BT has reported a 39% increase in pre-tax profits for the three quarters to the end of December 2009, although shares were down as it announced a £9 billion pension deficit.

The increase in profits saw them hit £466 million for the period, with net debt down £1 billion to £10.1 billion.

Revenues were down 4% over the three months, to £5.2 billion.

The telecoms firm began a 17-year payment plan to clear its pension deficit in December last year when it paid-off £525 million.

Ian Livingston, BT chief executive, said: “These results show that we are making progress. There is still a lot more to be done but our commitment to improved customer service and cost transformation is starting to deliver results and freeing up resources to invest in our future.

“In particular, we are one of Europe’s largest investors in super-fast fibre-based broadband and this will bring huge benefits to our customers and the UK.”