Sport and broadband boost BT

The reported slippage in sales isn't so bad, either: strip out restructuring costs and currency effects and sales actually rose 0.3 per cent. That's down to gains at BT's consumer division, which contributes about a quarter of group revenues. The unit added 203,000 retail fibre broadband customers and 38,000 television customers last quarter, taking the totals to over 2.5m and 1m, respectively. Second-quarter average revenue per user rose 7 per cent to £404, too, which helped boost first-half divisional operating profit by just over a quarter.

But revenues fell at BT's other four divisions. Moreover, the wholesale segment saw cash profit fall 21 per cent to £251m, partly reflecting the loss of business with the UK Post Office. But there were bright spots. BT's global services segment, for example, landed a contract with Deutsche Post DHL to connect 1,100 sites in 28 countries across Asia Pacific. The business division also recorded a 49 per cent rise in fibre broadband additions.

Meanwhile, next year's auction for the Premier League broadcasting rights - starting from 2017 - is beginning to loom large. BT already spends £246m a year on top-flight football content and analysts believe that could rise to £1bn annually down the line. However, finance director Tony Chanmugan says BT "won't get caught up in the moment" and will only bid sensible amounts.

Regulatory threats, however, appear to have weakened. Ofcom says BT can effectively set its own wholesale fibre rate and that its retail fibre price can be at or above the cost of providing the service. But the £5.9bn legacy pension deficit remains a burden and analysts at JPMorgan think BT faces a £655m deficit payment in March, just over double this year's figure. Nevertheless, they forecast full-year pre-tax profit of £2.66bn, giving EPS of 26.3p (£2.31bn and 25.7p in 2014).