BT unveiled its latest financial figures on Friday which showed declining revenues but increased profitability for the final quarter of 2011.

Revenues fell five percent year-on-year to €5.8 billion from October-December but operating profit rose eight percent to €950 million.

“We have delivered another quarter of growth in profits and cash flow despite the economic headwinds,” said CEO Ian Livingston.

Key to the increase in profitability was an overall three percent reduction in the company’s cost base, including reduced labour costs. Payments to operators due lower mobile termination rates and lower transit and wholesale call volumes also fell.

The UK-based operator said it added 146,000 retail broadband customers over the quarter, increasing its customer base to 6.1 million.

BT also released figures for the last nine months of 2011, which followed a similar pattern. Revenues fell four percent to €17.3 billion, while profit before tax rose five percent to €2.6 billion.

Over both the last quarter and the final nine months Openreach was the business unit that starred, increasing both revenues and profits. The company said Ethernet, LLU and fibre-based broadband had driven growth.

Andrews Jones, managing director (service design) at Openreach, spoke at European Communications’ recent Understanding Customer Experience seminar in London. You can watch his presentation by clicking here.