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BT has reported a two per cent rise in underlying core earnings for the second-quarter, with revenues slightly ahead of analyst expectations.

In a statement the UK's largest phone company said that its earnings before interest, tax, depreciation and amortisation (EBITDA) and specific items climbed to £1.45 billion in the three months to the end of September.

BT stressed that it had enjoyed a year-on-year increase in its earnings per share for the 22nd consecutive quarter.

The telecommunication group's revenues also increased by three per cent year-on-year, rising to £5.1 billion.

However the company's profitability slumped, with pre-tax profits before specific items and leaver costs sliding to £660 million in the second quarter, down from £665 million for the corresponding period. After specific items pre-tax profits dropped from £629 million to £435 million over the year.

BT's figures show that the communications giant faced restructuring costs of £216 million over the quarter, as the company seeks to change its operations in order to boost profits.

Revenue from the company's traditional businesses has also continued decline, but BT stressed that its increased penetration of the broadband market and the growth of value added propositions had "more than offset" lower call revenues.

BT said revenue from its traditional businesses, such as fixed phone services, fell by one per cent year-on-year in the second quarter.

Meanwhile the group's broadband revenue increased by 12 per cent to £543 million.

Commenting on the results BT chief executive Ben Verwaayen said: "We are achieving significant transformation of our business which will deliver further efficiencies alongside faster, better, smarter services for our customers.

"We continue to be the UK's number one retail broadband provider," he added.

Mr Verwaayen said BT's confidence in its future performance had led the company to up its interim dividend payment to 5.4p-a-share, representing a six per cent increase on the previous year.