Shares in BT have fallen by almost 5%, despite the telecommunications firm increasing its final dividend by 2% year-on-year to 5.87 pence per share.

In the year to 31 March, the firm’s adjusted revenue dropped by 4% year-on-year to £19.6bn, driven by lower international revenue including divestments, and declines in handset trading and adjusted UK service revenue.

Its UK service revenue fell by 1% to £15.4bn due to lower voice volumes in business and consumer, offset by price increases and an improved broadband FTTP mix in Openreach.

Furthermore, its earnings remained flat year-on-year at £8.2bn, while its profit before tax grew 8% to £1.4bn, following lower specific items, lower depreciation and amortisation, offset by a higher finance expense.

Chief executive at BT, Allison Kirkby, described the results as "another year of strong delivery" against its strategy.

She added: "We are building the UK's digital backbone even faster and further, connecting the country like no one else and accelerating our transformation - and we know there is much more we can do, as we create a better BT for all of us.

"Our record-breaking Openreach full fibre build hit its upgraded target and today reaches more than two thirds of UK homes and businesses, keeping us well on track for our 25 million milestone by the end of December. We extended our mobile leadership further, with EE winning best mobile network in three separate awards, bringing 5G+ to 73% of the population.

"Customer satisfaction reached a new high, with increased demand for our next-generation products and networks. Openreach achieved record full fibre connections and reduced line losses."

In its outlook for the 2027 financial year, BT expects its adjusted revenue to reach between £19bn and £19.5bn, while its UK service revenue landing between £15.1bn and £15.4bn.

Furthermore, its earnings are set to grow within the range of £8.2bn and £8.3bn.

In the mid-term, its revenue and UK service revenue is expected to witness sustained growth, with earnings growing ahead of UK service revenue.

Head of markets at AJ Bell, Dan Coatsworth, said that there is "still a sense the market was underwhelmed" by its full-year results.

He concluded: "BT’s recovery is built on moving past the peak period of capital expenditure on infrastructure which should then allow free cash flow generation to advance substantially.

"It has made progress on reducing costs in the past financial year and is intent on rewarding shareholders for their patience while the turnaround plan plays out. However, the company is finding it difficult to dial up revenue growth. Revenues fell modestly in the year to 31 March and are expected to decline in the current financial year too.

"Broadband customers are still being lost in its Openreach business and while its consumer retail division returned to growth, average revenue per user remained under some pressure thanks to strong competition in this market."

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