A fall in premium-rate services revenue has hit the fixed-line business of BT and helped flatten pre-tax profits in Ben Verwaayen's final year as chief executive.

The group told Times Online this morning that it had seen a decline in revenues from television quiz shows and phone-ins in the third and fourth quarters. The telecoms group refused to confirm that this was the result of a series of scandals which most recently saw ITV fined a record £5.7 million.

Pre-tax profit for the 12 months to March 31 were virtually flat at £2.63 billion on revenues hardly changed at £20.7 billion but the group raised the full-year dividend by 5 per cent to 15.8p.

Broadband revenue at BT Retail grew by 25 per cent year on year as the company signed up a net 150,000 subscribers, taking it to 4.4 million customers, and retaining its status as the UK’s biggest broadband supplier.

BT's global services division achieved contract wins of £2.8 billion in the fourth quarter, with £8 billion in global contract wins over the past year.

The group said that revenue from its traditional business had fallen by 2 per cent. This decline included the impact of a decrease in premium rate services revenues, it said, which accounted for a one percentage point reduction.

BT said it expected to continue to deliver revenue growth as it continues its "transformation from a fixed-line business into a software-driven communications services company".

It expects increase dividends per share in the next year and to generate further gross cost savings of £700 million.

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