BT will announce price cuts on its wholesale broadband services within the next two weeks, the new chief executive, Ben Verwaayen, said today. He did not give details of the cuts, but said they will be "significant".

The company had been expected to announce details of the cuts at a news conference to report financial results for the third quarter ending 31 December for its holding company, BT Group Plc.

BT Group reported a pretax profit of £850m, excluding one-off items, compared to £760m a year ago.

During the quarter, the company sold its mobile subsidiary, O2 (once BT Cellnet), and wound up its Concert partnership with AT&T. Excluding these and other discontinued operations, the company reported a pretax profit on continuing operations, excluding exceptional items, of £381m, down from £483m last year.

The group reported a year-on-year drop in revenue for the quarter, from £5.25bn to £5.07bn. But revenue from continuing operations rose from £4.37bn to £4.66bn.

The company reduced its debt from £16.5bn to £13.6bn during the quarter.