Cost-cutting measures that have included a reduction in UK staffing levels of 2,300 people were responsible for a 20% rise in first quarter net profits to UKP493m announced by British Telecommunications Plc yesterday. The phone company also cited a UKP180m reduction in capital expenditure on plant, equipment and property, and the continuing impact of lower pension expenses the result of a pension holiday announced with 1989’s first half figures – as reasons for the increase in profits on revenue that grew by less than 10% to UKP3,208m. All of its activities had achieved seen some modest growth, however, with inland and international call revenues rising by 7.6% and 5.8% respectively. Business exchange line connections were up by 9.1% on last quarter, with residential connections increasing 2.5% slower rates than last time, which British Telecom puts down to the slowdown in the UK economy. The British Telecom share price rose to 295 pence from the previous close of 287p on the news.
