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BT REPORTS SECOND QUARTER RESULTS 1993/94

 NEW YORK, Nov. 4 /PRNewswire/ -- British Telecommunications plc (NYSE: BTY, BTY.PP), formerly British Telecom now trading as BT, announced today financial results for the second quarter and six months to Sept. 30, 1993.
 A synopsis is:
 -- Earnings per ADR for the six months were 1.56 pounds sterling ($2.33) compared with 1.01 pounds in the same period in 1992, and earnings for the second quarter were 0.77 pound ($1.15) compared with 0.45 pound in the prior period.
 -- The results for the six months include redundancy charges of 150 million pounds ($225 million). In the second quarter, redundancy charges were 97 million pounds ($145 million). For the previous year, redundancy charges for the six months were 442 million pounds and for the second quarter 386 million pounds.
 -- Income before tax for the six months increased to 1,500 million pounds ($2,250 million) and to 743 million pounds ($1,115 million) for the second quarter.
 -- Revenues for the six months increased by 3.5 percent and by 5.2 percent in the second quarter; increases of 4.1 percent and 5.3 percent, respectively, after allowing for the effects of disposed businesses.
 -- Call volumes for domestic calls, on a 12-month moving average, grew by 3 percent. International call volume on the 12-month moving average grew at 7 percent.
 -- Access line growth was 1.8 percent for residential and 1.9 percent for the business sector, giving an increase of 1.9 percent overall.
 -- Manpower reduced by 4,400 in the half year and by 3,200 in the second quarter. The total employed in the Group at Sept. 30, 1993, was 166,300.
 -- Interim dividend declared of 0.83 pound ($1.24) gross per ADR.
 Iain Vallance, chairman of BT, said:
 "Demand for our products and services continued to show encouraging signs of growth in the half year. Income before taxes increased by 2.5 percent after adjusting for redundancy charges and the effects of disposals.
 "But earnings per ADR were static in the second quarter on this comparable basis. And, with the recent tightening of the main U.K. price control to RPI minus 7.5, there will be increasing pressure on profitability.
 "The interim dividend of 0.665 pound per ADR, net of U.K. tax credit, represents an increase of 8.1 percent. The board believes that this provides a good return to shareholders. Future dividend policy will need, more than ever, to take account of continuing low inflation, harsher regulation, tougher competition, and emerging long-term investment needs and opportunities."
 This release summarizes the statement made in London today.
 British Telecommunications plc is the principal supplier of telecommunications services and products in the United Kingdom.
 Results reported in pounds sterling have been expressed in U.S. dollars at an exchange rate of $1.50 to the pound, the rate prevailing on Sept. 30, 1993, the last date of the reporting period.
 Each ADR represents ten shares of BT ordinary stock.
 -0- 11/4/93
 /CONTACT: Ashley Rayfield of BT, 212-297-2773/
 (BTY)


CO: British Telecommunications plc ST: IN: TLS SU: ERN

GK-DH -- NY010 -- 0465 11/04/93 07:22 EST
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Publication:PR Newswire
Date:Nov 4, 1993
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