British Telecommunications Plc has reported third quarter results ahead of most expectations. The increased profits were mainly attributed to a reduction in lay-off costs. Chairman, Ian Vallance says operating profits before the lay-off costs were virtually flat in both the quarter and the nine months because of price controls and costs of winning new business. Pre-tax profits in the third quarter were up 26% to #829m. Lay-off costs in the quarter were #60m, compared with #217m in the previous quarter. Third quarter sales rose 4.4% to #3,620m. Sir Iain said increased revenues from mobile communications and exchange line rentals more than offset the price reductions that hit inland call turnover. But finance director Robert Brace said he hoped the decline in the company’s inland call volume growth rates was ending. Inland call revenues rose 2% in the quarter, which slowed the fall over the nine months to 2.5%. There’s a definite change in the trend there. Whether this is just a blip remains to be seen, Brace told Reuters. International call revenues were up 3.7% to #500m and 2.8% to #1,486m in the nine months, boosted by increased volume and a weakening UK pound offsetting price cuts. The cable companies continue to eat into the company’s residential market share, doing their bit to bring about a small net loss in the the quarter as the number of residential lines installed fell slightly compared with a year ago. But the business market continues to be strong for British Telecom. It was the main driver behind overall exchange line rental turnover increasing 6.7% in the nine months. Mobile communications turnover rose 27% in the quarter.
