BT reports surge in profits following increased uptake of broadband

Communications giant BT has recently revealed that as a result of taking on more broadband customers its profits have soared by an impressive seventy one percent.

It has been reported by the communications and broadband giant BT that its profits have soared as a result of an increase uptake of broadband and a drive to cut costs. BT has reported a very impressive seventy one percent surge in profits as a result of winning more customers. The company has also been cutting costs in a number of areas.

In the fourth quarter of last year BT is said to have added around 252,000 new broadband customers. The company has been relying more and more on its broadband and internet service to make up for the downturn in its fixed landline service sector. In the year to the end of March this year the pre-tax profits came to an impressive £1.7 billion, which compared to £1 billion in pre-tax profits for the previous financial year.

BT’s Internet services have been boosted by the increase in internet enabled devices. The company’s next generation copper broadband service, Wholesale Broadband Connect, which offers speeds of up to 20Mbps, now serves more than sixty five percent of premises in the UK. By the end of this year the company wants to extend this to eighty percent of UK premises.

The chief executive of BT, Ian Livingston, said: “We have delivered profits and free cash flow ahead of expectations for the year, while making significant investment in the business for the future. Free cash flow has nearly trebled compared with two years ago.”

Source – Telegraph