MOBILE phone operator Orange has rung up its first year of operating profits and increased its slice of the booming telecoms market.

The company, Britain's third largest mobile operator, reported profits ahead of expectations as it increased its UK mobile customer base by 80 per cent.

Operating profits in the year to December 31 were £15.4 million, compared with a loss last year of £51.1 million.

Its share of the UK market increased from 14.2 per cent to 16.6 per cent and more than 230,000 new customers joined up to the network, bringing the total to 2.16 million.

The group said UK regulatory changes, which mean people can change mobile phone providers and take their existing number with them, would add to customer numbers this year.

Further strong growth was expected from the ever-growing range of services transmittable over mobile telecoms links from data such as electronic commerce.

While the operating figures came in at a profit, the overall bottom line showed a loss before tax of £98.1 million, compared with a £139.1 million loss the previous year.

The losses, which were less than analysts expected, were mostly made up from interest paid on the debts Orange has incurred to fund its massive expansion programme.

Turnover at the group, which was the FTSE-100 Index's second fastest growing share price last year after Colt Telecom, was £1.21 billion, compared with £913.7 million the previous year.

The company said its UK operations were likely to jump into a pre-tax profit in 1999, although investment in continental expansion plans would probably drag the overall figure into losses.

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