WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. FINANCIAL DATA SCHEDULE <ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS CONTAINED IN THE BODY OF THE ACCOMPANYING FORM 20-F AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000,000 <CURRENCY> UK STERLING <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <EXCHANGE-RATE> 1 <CASH> 44 <SECURITIES> 962 <RECEIVABLES> 197 <ALLOWANCES> 28 <INVENTORY> 6 <CURRENT-ASSETS> 1,607 <PP&E> 2,248 <DEPRECIATION> 1,469 <TOTAL-ASSETS> 2,705 <CURRENT-LIABILITIES> 2,250 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 354 <OTHER-SE> 18 <TOTAL-LIABILITY-AND-EQUITY> 2,705 <SALES> 0 <TOTAL-REVENUES> 3,032 <CGS> 0 <TOTAL-COSTS> 2,482 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 72 <INCOME-PRETAX> 580 <INCOME-TAX> 196 <INCOME-CONTINUING> 384 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 384 <EPS-PRIMARY> pence 26.7 <EPS-DILUTED> pence 26.6