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Last Updated: Wednesday, 20 July 2005, 23:32 GMT 00:32 UK
AT&T rings up profit on cost cuts
Telephone keypad
AT&T has slashed workers and marketing costs in recent months
US telecom group AT&T has thanked cost cutting measures for almost tripling its profits, despite falling revenues.

The company said profits for the three months to June jumped to $307m (254.5m) from $108m a year earlier.

The surge came as revenues slipped 11.5% during the period to $6.76bn from $7.64bn during the same period in 2004.

In October, AT&T carried out an $11.4bn write down of its assets, which reduced its wear and tear costs by $548m during the period.

The group has also saved cash by slashing 6,100 jobs since January and abandoning marketing within the residential market after changes to rules covering how it rents lines from local phone firms.

In January, the group agreed to be taken over by phone company SBC Communications in a $16bn deal.

The move effectively marks the end of AT&T, which was founded in 1875 by telephone pioneer Alexander Graham Bell and is one of the best-known companies in the US.

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