BT blamed a fall in pre-tax profits and revenues on the performances of its troubled enterprise arm and Global Services among other factors, but took the positives from mobile operator EE.
The UK-based operator registered a 10 percent year-on-year fall in pre-tax profits, adjusted for specific items, to £789 million in the three months to 30 September.
Investment in sports rights and customer experience, along with higher pension costs and lower sales, hit EBITDA, down four percent to £1.81 billion.
Group revenues fell two percent to £5.95 billion as its Global Services arm continued to suffer with revenues down 10 percent to £1.26 billion.
The operator is not winning enough contracts from multinationals – order intake is down 38 percent versus 12 months ago – and said trading conditions remained challenging.
Efforts to reposition Global Services as a company that can deliver “a global, scalable portfolio of products and services from cloud-based platforms” remain ongoing.
BT’s UK-focused Business and Public Sector division faired better, although sales were down two percent to £1.15 billion.
Revenues at Openreach, which this week unveiled details of its FTTH consultation, ticked up one percent to £1.28 billion.
EE was the standout performer, with sales up four percent to £1.33 billion as ARPU jumped nine percent to £20.90.
The operator said customers were spending more in return for bigger bundles, exclusive content and better smartphones.
BT now has 27.9 million mobile customers, of which 19.4 million are on 4G.
The company’s Consumer business unit also saw revenues rise, up one percent to £1.26 billion.
ARPU rose six percent to £41 as the division added 22,000 broadband customers and 7,000 TV subscribers in the quarter.
CCS Insight analyst Paolo Pescatore described the TV numbers “extremely disappointing”.
He said: “Despite its strong assets, the company is struggling to cross sell more services into its existing subscriber base.
“[Consumer CEO] Marc Allera faces some tough decisions with the integration of the consumer units and the forthcoming Premier League rights auction.”
BT Chief Executive Gavin Patterson said: “Our first half results are in line with our expectations as encouraging results in our consumer facing lines of business, notably EE, helped offset ongoing challenges in our enterprise divisions, in particular Global Services.”