Conduit, the directory assistance provider that floated two years ago, moved into profit for the first time in the final quarter of 2001/02. The Dublin-based group, which is listed on Frankfurt's Neuer Markt, reported an after-tax profit of €68,289 in the three months to March 31st compared to a loss of €2.8 million in the same period a year earlier.

Following release of the results, shares in the group rose by nearly 5 per cent on the Neuer Markt to €2.15 before easing slightly to close at €2.10.

Earnings before interest, tax, depreciation and amortisation continued to show an improvement, rising to €1.7 million from €300,000 in the third quarter. Revenues rose by 72 per cent to €52.3 million while call volumes for the year rose by 83 per cent to 82.6 million calls.

Conduit said it would be putting particular emphasis on expanding its business in Britain this year following deregulation of that market in October. It has been allocated the 118899 number as an access code for the UK directory assistance market.

"Conduit is well positioned to take advantage of the deregulation opportunity in the UK," Conduit chief executive Mr Liam Young said.

The company said it already handled more than 50 per cent of all British mobile-originating directory assistance inquiries and holds 11 per cent of the direct enquiry market. "We are confident that it is at least as positive an opportunity as the Irish market," Mr Young said.

Conduit, which operates the 11850 directory assistance number as well as services for East Telecom and O2 in the Republic, says it now holds 35 per cent of the Irish market.

It also provides directory assistance services in Austria and Switzerland where, despite problems with the Swiss regulator, operations are at break-even point.

Mr Young said that, although the problems with the regulator had not been resolved, the operation was not a drain on resources and Conduit was looking at new ways to grow its business there.

Davy, which is broker to the company, said the results strongly exceeded its expectations and it planned to upgrade its forecasts for 2003, despite the costs involved in rolling out Conduit's new service in Britain.

"Conduit's proven ability over the last few quarters of driving higher volumes through its existing infrastructure increases our confidence in the profitability of the group going forward," analyst Ms Bernie Lardner said.