Investors in BT (BT.A) shouldn't expect any miracles in its half-year results, scheduled for Thursday 30 October. Government regulation and the decline of the fixed-line business continue to weigh on the telecom titan's global services, wholesale and openreach divisions, which account for almost four-fifths of its revenues.
Nevertheless, Berenberg analysts expect BT's second-quarter cash profits to inch up 1 per cent to £1.45bn. They also expect 114,000 more broadband subscriptions - about two-thirds of the market's net additions. These gains would stem from BT's strategy of investing in TV and broadband and bundling its services while cutting costs. Its first-quarter operating costs, excluding BT Sport and low-margin call traffic, were down 3 per cent.