BT’s revenues fell 9% year-on-year to £4.5 billion during the financial quarter ending September 30. However, the company grew pre-tax profits by 7% to £608 million, having cut costs through "cost efficiency programmes".

The telco was once again dragged down by its underperforming IT services division, BT Global Services, where sales dropped 13% to £1.8 billion during the quarter. This performance "reflected the tough conditions in Europe and the financial services sector", it said.

BT Global Services also incurred a £25 million restructuring charge during the quarter.

The company said it does not expect its performance to improve before the end of the year, in part due to BT Global Services, but also following a legal dispute of how much it can charge mobile telcos for dialling 0800 numbers.

“We have delivered another solid quarter of growth in profit before tax despite the economic conditions and regulatory impacts,” said Ian Livingston, chief executive at BT. “We continue to make significant investments in the future of our business and we are again accelerating our fibre roll-out."

“Over the summer we helped to deliver the most connected Olympic and Paralympic Games ever and I am proud of the part that our people played in its success,” Livingston said.