BT Group Reports Increase In Annual Profits

Telecoms group BT has reported a sharp rise in its annual profits.

The company's pre-tax profit increased by 14% to £2.6bn in the year to 31 March.

However, the firm saw revenue fall by 2% to £17.85m.

The group also said it connected a record 455,000 new broadband customers in the last quarter of the financial year.

BT's chief executive Gavin Patterson said: "Profit before tax and free cash flow have both grown strongly and we have delivered or beaten the outlook we set at the start of the year."

He also said the company had made further progress in cutting its costs, "contributing to a 6% decline in operating costs in the fourth quarter".

Mr Patterson added: "Our performance during the year is reflected in our full year dividend, which is up 14%.

"Our results and the investments we are making position us well for the future and enable us to increase our free cash flow outlook for the coming year."

BT shareholders last week approved the takeover of EE for £12.5bn , although the deal is awaiting regulatory approval by the Competition and Markets Authority (CMA).