BT posts a surge in first quarter profit.

TELECOMS group BT posted a surge in firstquarter profits today despite a sales boost of just 2 per cent.

BT said the increase for the three months to June 30, 2 per cent on the previous year at pounds 4.59bn, was below targets, and blamed tough conditions in the sector.

Chief executive Ben Verwaayen said: ``Overall turnover growth of two per cent was slower than expected, with no growth in sales to other telecoms operators.''

Turnover in the wholesale division fell two per cent on an underlying basis to pounds 2.75bn because of these continuing adverse market conditions.

However, also playing a part were price reductions such as those introduced by Oftel. The regulator has introduced the controls as a way of boosting competition across the telecoms sector.