BT Retail makes money hand over fist

Guidance up

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.

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