LONDON (AP) — Telecommunications company BT Group PLC announced a $2.5 billion ($4.96 billion) share buyback programme yesterday as it unveiled an 11 percent gain in fourth-quarter profit, boosted by sales of broadband internet and data-network sales.BT, which is already Britain's dominant fixed-line telecommunications provider, boasted that the strong result meant it had overtaken Richard Branson's Virgin Media to become Britain's top broadband supplier.

However, the market was surprised by BT's announcement of $450 million in restructuring costs, the majority of which will be incurred in 2007 and 2008, and the company's shares dropped 2.1 percent to 308.5 pence ($6.10).

Chief executive Ben Verwaayen said the costs resulted from BT's decision in April to restructure the business to focus more on delivering software-based services over broadband.

Investec analyst Christian Maher said the share price reaction could be a result of the share buyback plans already being rumoured before the announcement and profit-taking.

But other analysts said that BT should have made more gains on the customer service, networking and content problems faced by its rivals, including Virgin, to boost its market share.

BT reported that net income rose to $477 million ($946 million) in the three months ended March 31, from $431 million in the comparable period a year earlier. Revenue advanced 3 percent to $5.29 billion ($10.5 billion).

In the full year, profit rose 84 percent to 2.85 billion pounds ($5.65 billion) with revenue rising 3.7 percent to $20.2 billion ($40.1 billion).