soar 25 percent to $7.1 million in the past six months, according to figures released yesterday.

The rise has been attributed to improved performance and to reduced operating and financing expenses, according to the company chairman, James King.

The company reported net income of $7,119,910 or $3.64 per share for the first six months to September 30, 2000. Last year the same period saw profits stand at $5,712,979 or $2.91 a share.

Total assets for the company stood at $148 million, up from $134.4 million the year before.

Expenses fell to $35.9 million, down from $37 million the same six months the year before.

Interest expenses fell from $1.3 in 1999 to $1.1 in 2000.

Back in July, money brought in from local telephone calls by Bermuda's oldest local carrier, BTC, shot up nearly 30 percent in the year.

But in contrast international call revenue fell nearly 35 percent in the same period even though volume increased, according to figures published in BTC owner KeyTech's annual report for the year ended March 31, 2000.

The company attributed the fall in revenue to reduced interconnection fees received from the Island's international carriers.

Nearly ten years ago, in 1991, local calls accounted for only 55.7 percent of the total revenue, with international taking 44.3 percent.

Last year's report shows that while the number of full-time employees has risen from 411 to 442 since 1991, the cost has shot up by over 80 percent or $13.3 million from $16.5 million in 1991 to $29.8 million in 2000.

However, the rise in cost must take into account the takeover of Internet service provider Logic Communications and its highly qualified -- and paid -- staff.

The detailed breakdown shows that Logic made a net loss of $2.1 million that year, compared to a net loss of $106,298 the year before.

Revenue, however, rose 2.5 percent from $7.8 million to $8 million and operating expenses also went up by 34 percent from $5.9 million to $7.9 million.

Last year BTC made a net profit of $16.3 million, up nearly 15 percent from $14.1 million.

KeyTech also has a total of $11 million -- 40 percent -- of Cablevision shares with a promissory note of $4 million on top of the $7 million in cash for shares.

The annual report showed a small rise in KeyTech's net income by 1.5 percent from $14 million to $14.2 million.

In total, revenue rose 3 percent from $82.5 million to $85 million in 2000.