Directory inquiries group Conduit has reported a sharp rise in interim profit boosted by a 30 per cent growth in call volumes and lower costs.

The group, which has operations in Ireland, Britain, Austria and Switzerland, recorded pre-tax profits of €3.63 million in the six months to the end of September compared with a loss of €7.1 million in the same period last year.

Revenue grew by a third to €31.87 million.

Investment in telecoms equipment and computers came to €600,000 in the six months, significantly down on recent periods.

But the company says it anticipates the need for increased investment in coming quarters as its 118899 service in Britain comes on stream next year.

The own-brand service in Britain is a priority for the group going forward as the directory inquiries market there is deregulated and will also lead to a sharp rise in marketing costs.

Chief executive Mr Liam Young said: "I feel confident we will achieve considerable success there over the next year."

He said call volumes in Ireland were still growing, up 5 per cent in the half-year, helped by the deal brokered with O2, whereby the mobile operator promotes the Conduit service.

Conduit cut the cost of providing services by close to 10 per cent over the year-ago period to €16.33 million with operating expenses also down 8.5 per cent to €12 million.

Commenting on its success in cutting costs, Mr Young said: "Over the first two or three years of operation, we were about growing quickly; now we are more about managing the business, which means containing costs, and that is one reason why you are seeing profits grow."

Mr Young said the company was considering establishing an operation in Spain, where it has secured the same 11850 number that it uses in Ireland.

The company increased employment by 5 per cent to 1,493 in the 12 months to the end of September. Conduit's shares jumped over 17 per cent to €2.40 on the Neuer Markt following release of the results.