Mobile phone group mmO2 pledged today to review its cautious stance on dividends after posting its first full-year profits of £95 million.

The profits performance is in sharp contrast to a year ago when mmO2 reported losses of £10.2 billion after buying third generation licences at the height of the telecoms boom.

The group revealed it was looking at ways to enhance value for investors after its "future financial profile" became clearer in the 12 months to March 31.

Options include a share buyback programme or a maiden dividend payment, which was ruled out temporarily in the wake of its split from BT at the end of 2001.

Details of the review - expected to be completed by November - came as the group announced a 22 per cent rise in total revenues to £5.65 billion.

Updated: 11:02 Tuesday, May 18, 2004