BT boosts profits lift on mobile sales

Profits up by nine per cent
Profits up by nine per cent

BT said it signed up 100,000 mobile phone customers in the three months since re-entering the market as it posted a rise in quarterly profits.

The telecoms giant launched SIM-only deals for existing customers in March and plans to offer a full range of products and services after completing its £12.5 billion takeover, expected in March 2016.

BT also added 85,000 retail broadband customers in the three months to the end of June this year, more than half the growth in the market, where its offer has been bolstered by bundling in free Premier League TV with its internet packages.

Adjusted pre-tax profits for the group rose nine per cent to £694m.

Chief executive Gavin Patterson said it was “an exciting time for BT” and that it was on track to achieve its outlook for the full year.

BT is re-entering the mobile phone market for the first time since spinning off its BT Cellnet operation in 2001, which later became O2.

But it will not begin marketing a full range of services to consumers until the completion of its EE deal.

Mr Patterson said: “Our mobile plans have got off to a good start with more than 100,000 consumer mobile customers signed up in the first three months.

“We’re also looking forward to completing our acquisition of EE, which will allow us to create a true digital UK champion, providing customers with greater choice and value and helping to deliver the UK’s connected future.”

Group results were bolstered by an 11 per cent rise in operating profits to £204m for its consumer division which includes broadband as well as the BT TV platform.

Numbers on the TV platform rose by 60,000 to 1.2 million in the quarter.