LONDON (AP) — BT Group PLC reported a 6.2-percent fall in final quarter net profit yesterday, after losing some wholesale customers to broadband services and as costs rose.

Net profit fell to £426 million ($828.5 million) over the three months ending March 31, compared with £454 million for the quarter a year ago.

The drop came despite an 2.5-percent increase in revenue to £5.42 billion ($10.5 billion) from £5.29 billion.

The company said it incurred £110 million ($213.9 million) in costs in the quarter to cut jobs and reorganise the company.

Wholesale revenue has fallen as demand for broadband has increased in Britain, leading Carphone Warehouse Group Plc and British Sky Broadcasting Group Plc to "unbundle" lines, rolling out their own infrastructure and ending rental agreements with BT's wholesale unit.

Full-year net profit dropped to £1.74 billion ($3.38 billion) from £2.85 billion in the previous year.

Full-year revenue rose 2.4 percent to £20.7 billion ($40.3 billion), from £20.22 billion.