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By | John Oates 3rd February 2011 09:59

BT profits from services

Turnaround ahoy

BT almost doubled profits in the last quarter of 2010, even though total turnover was slightly down.

In the three months ended 31 December 2010 the telco made revenues of £5.038bn, down three per cent. But profit before tax was up 30 per cent to £531m.

BT added 188,000 DSL customers, a 53 per cent market share. Global Services is expected to create cash flow of £100m this year, rising to £200m next year.

Ian Livingstone, BT's chief executive, said: "BT Retail had a good quarter with growth in business revenues and our highest share of DSL broadband net additions for eight years. Openreach benefited from a stronger broadband market and growth in its copper line base.

"BT Global Services is now expected to be cash flow positive this year, a year earlier than targeted."

BT Global Services turned over £1.974bn in the quarter, down seven per cent on last year. BT Retail brought in £1.967bn, down three per cent.

BT Wholesale revenue was flat at £1.070bn, as was Openreach which made sales of £1.240bn and adjusted profit of £550m.

Earnings per share were 5.4p, up 32 per cent.

Apart from improving predictions for Global Services, BT said its outlook for the coming year was unchanged.

BT's full numbers for the quarter are here. ®

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