Job cut costs clip bottom line at BT

Telecoms group BT's underlying profit edged up in the first quarter by 1%, just short of forecasts, but net profits fell 35% with the rising costs of job cuts.

Profit in the three months to June dropped to £397 million from £607 million a year earlier. Underlying earnings before interest and tax were little changed at £1.43 billion.

The company said revenues rose 3% to £5.18 billion, ahead of forecasts.

The BT Retail unit won more than 30% of new broadband accounts during the quarter.

"Our full-year guidance remains unchanged," said chief executive Ian Livingston.