Analysts at Ovum have indicated that BT's latest results signify a "solid" performance thanks to continued demand for the firm's broadband services.
BT reached its target of €7.5 billion of annual earnings a year earlier than expected after making savings worth €3.6 billion in the last three years.
The group now expects dividends to grow by 10 to 15 percent in the next three years, with a 14 percent increase in its latest full-year dividend reported.
BT's underlying revenues fell by 1.9 percent to €24 billion in the year to March 31, as it faced falling income from calls.
But underlying earnings were up 3 percent to €7.6 billion, after the group reduced its operating costs by six percent.
More than one million new customers were added to BT's broadband network in the 12 months to March, with 589,000 signed up through its retail division.
Chief executive Ian Livingston said: "We have made progress again this year delivering for all our stakeholders, but we know there is more to do."
Commenting on the results, Ovum analyst Mark Giles said: "BT have presented solid results both financially and operationally in terms of subscribers.
"Despite its lack of content in comparison to Sky and Virgin, net broadband additions continued strongly in 4Q, signalling consumers' preference for a strong bundle of services, and how much BT's fibre offering is proving to be a differentiator.
"However, increasing pricing pressure from rivals saw an accelerated decline in fixed voice subscribers in 4Q. Although, BT is sticking to its guns and not looking to follow suit, which makes sense given that it has tended to differentiate more on quality rather than on price."