BT Chief Executive Gavin Patterson lamented the scandal at its opco in Italy for overshadowing the performance of the rest of the group, as he unveiled its latest financial figures.
As trailed earlier this week, BT Italia was found to have been overstating profits for several years.
The UK-based operator revealed it has had to adjust previous years figures to the tune of £268 million as a result, while it has booked another £245 million as a one-off charge split over two quarters ending September and December 2016.
BT’s Global Services division, under whose umbrella its Italian opco falls, saw revenues, adjusted for the scandal, the acquisition of EE and currency movements, decline seven percent year-on-year in the three months to December.
On a reported basis its sales were up eight percent to £1.4 billion, but total order intake fell 14 percent to £1.2 billion.
This pushed underlying group revenues down 1.5 percent, while underlying EBITDA fell eight percent.
On a reported basis group sales hit £6.1 billion, while EBITDA reached £1.6 billion.
Patterson (pictured) said: “The good progress we’re making across most of the business has unfortunately been overshadowed by the results of our investigation into our Italian operations and our outlook.
“I am deeply disappointed with the unacceptable practices by some that we’ve found.”
Arguably the best news came at EE, where underlying sales rose for the first time, hitting £1.3 billion, an increase of two percent.
The mobile arm put its growth spurt down to additional revenue from a new pricing strategy.
Earnings fell, however, as it spent more on new devices.
BT said its total mobile subscriber base now stands at 30.2 million.
There was continued good news at BT Consumer, which saw sales rise four percent to £1.3 billion thanks to growth in broadband and TV.
It added 83,000 retail broadband customers in the period and BT said over half of all broadband subscribers are now on fibre.
The company added 52,000 TV customers, taking its total subscriber base to 1.7 million.
Earlier this week, BT announced plans to start charging customers for its sports offering from August.
However, as highlighted earlier this week, BT’s Business and Public Sector arm is suffering as the government cuts back on spending.
The division saw revenues fall six percent when adjusted for the inclusion of SMEs from EE.
Meanwhile, revenues at Openreach were down one percent to £1.3 billion on the back of regulatory price reductions.
This overshadowed news of the highest ever number of fibre broadband net connections, which hit 498,000.
The number of premises connected to its fibre broadband network rose to 7.2 million, or 27 percent of those passed, as a result.
It added the number of missed appointments has halved.
Patterson said: “We are pushing ahead with reforms at Openreach, particularly on governance and customer service and continue to believe an agreement can be reached with Ofcom on its Digital Communications Review.
“We think these changes address Ofcom’s concerns and can form the basis for a fair, proportionate and sustainable settlement.”