Shares in BT soared 9% on Thursday morning after the group posted a rise in profits.
The group posted a 24% year-on year increase to profits before tax to £1.3 billion and a 2% rise in earnings to £3.7 billion.
“We continued to generate positive momentum in the second quarter resulting in encouraging results for the half year,” said the outgoing chief executive Gavin Patterson.
“We are successfully delivering against the core pillars of our strategy with improved customer experience metrics, accelerating ultrafast deployment and positive progress towards transforming our operating model.”
Earlier this month, BT appointed Worldpay boss Philip Jansen as its new chief executive. He will take over from Patterson in February 2019.
The company expects full-year earnings to be in the upper end of the £7.3 billion to £7.4 billion range.
Independent telco analyst, Paolo Pescatore, said:
“Worrying times for BT. More turmoil awaits and the incoming chief executive will have to make some tough decisions across the board and with all of BT’s business segments.”
“Despite its strong network assets, BT is struggling to standout in a competitive landscape. This will only proliferate with the arrival of Comcast (through Sky) and potential others in the future as well.”
“The consumer segment continues to stand out. BT Plus has made a modest start. However, greater focus needs to be placed on retention and upselling into existing base. And more importantly ensuring costs do not spiral out of control due to the roll-out of 5G and fibre broadband connections. No easy feat while trying to renew and secure key sports rights.”
“Its rivals are strengthening their respective positions in content which might prove to be a tough end to the calendar year for BT.”
Shares in the group (LON: BT.A) are trading +8.5% at 261,00 (1534GMT).