“The transformation of our business continues at pace. This is the second consecutive quarter of underlying growth in turnover. New wave turnover, including ICT, broadband, mobility and managed services grew by 32 per cent to £936 million. New wave businesses generated over 20 per cent of group turnover in the quarter. This strong growth in new wave has offset the decline in turnover from the traditional business and these results reflect a continuation of recent trends.
“Earnings per share before goodwill amortisation, exceptional items and leaver costs grew by 10 per cent to 4.6 pence.
“Our 21st Century Network (21CN) programme team have announced a number of customer trials with large scale roll out expected in 2006.
“Whilst the environment remains challenging we are confident in our strategy to deliver long-term growth for shareholders.”