BT's profits boosted by broadband

BT is being boosted by its broadband and other IT services

British Telecom has reported a 26% rise in half-year profits, boosted by growth in its broadband and IT division.

Reporting its results for the six months to 30 September, BT said pre-tax profits rose to £1.24bn ($2.35bn) from £988m in the same period last year.

BT's revenues for the period rose 3% to £9.8bn, which was at the top end of market expectations.

Revenues in the firm's broadband and IT services division jumped 20%, and now make up 35% of BT's overall business.

Competitive broadband market

BT chairman Sir Christopher Bland, said the firm's latest results showed "sustained momentum across the business".

However, despite the growth in revenues at its broadband and IT division, BT Retail's share of net broadband additions fell to 25% during the three months to 30 September from 30% in the previous quarter.

The slowdown reflected increasing competition in the sector, notably new offerings from rivals such as Carphone Warehouse and Sky.

Despite BT's dip in the broadband market, its chief executive Ben Verwaayen said the firm remained confident going forward.