BT shares have risen by more than 10% in response to
better-than-expected quarterly financial results.
At £1.25, BT shares are at their highest level since January,
according to the
Financial Times.
Group revenue for the three months ending 30 June rose 1% to
£5.2bn compared with the same period a year ago.
But pre-tax profits fell 45% to £272m and earnings per share
fell 43% from 4.9p to 2.8p.
Ian Livingston, chief executive at BT, said the results showed a
solid start to the fiscal year against a background of challenging
conditions.
"We are on track to deliver reductions in operating costs and
capital expenditure of well over £1bn and generate group free cash
flow of over £1bn this year," he said.
Livingston earlier this year forecast the group would see
revenues fall by up to 5% in 2009/10 due to expected falls in
revenues for BT's
Global Services division due to delayed IT project in the
recession.
Turnover of the division, which provides IT and
telecommunications services, rose 4% to £2.08bn due to positive
foreign exchange movements.
"BT Global Services is making progress, although there is still
much to do," said Livingston.
Excluding the foreign exchange benefits, BT Global Services'
turnover fell 4% and it made an operating loss of £124m, from a £1m
profit a year ago.