BT Retail told the City today that it's making lots more cash than it expected.

BT's Retail division is expected to make revenues of £8.5bn and Ebitda* of £738m for the year ending March 2007. This represents Ebitda growth at a rate "into the teens" - three times faster than previously expected.

Shares in the telco are trading up slightly today on the news - at 306p - the highest they've been since the dizzy highs of 2001.

The telco's business is split into:BT Business, BT Enterprise, BT Ireland and BT Retail.

BT Business has 1.1 milion small business clients and annual revenues of £2.2bn and Ebitda of £225m.

BT Ireland is expected to be a billion pound business within five years - it currently brings in £700m revenues and makes Ebitda of £145m.

BT also announced a wireless service for small and medium businesses today. More here.®

*Ebitda stands for Earnings before interest, taxation, depreciation and amortisation.