Annual revenues have fallen at the Bermuda Telephone Company by $1.3 million, according to a preliminary year-end announcement made by the Bermuda Stock Exchange yesterday.

BTC's annual report will appear on June 18, recording net income at $12.9 million, down from $14.2 million the year before. Nevertheless, BTC chairman Dr. James King said the company has produce "another solid performance".

Operating revenues were $1 million higher in 2001 at $86.6 million and operating expenses were reduced by a similar amount. But these gains were eroded by debt charges of $1.3 million and a reduction in investment income of $2.5 million.

The company attributed the investment decline to the lower returns in North American markets during the year.