BT gets lines crossed after FTSE falters

Blue-chip telecoms behemoth BT proved a drag on the top flight yesterday as its shares took a hit following news of a dip in third-quarter revenues and earnings as it lost 5,000 pay TV customers.

The group saw adjusted earnings drop 2 per cent to £1.8 billion in its third quarter to the end of December, while sales fell 3 per cent to £5.97bn.

BT put the declines down to increased investment in mobile devices and “customer experience”, along with higher business rates charged on its network assets as well as pension costs.

Shares fell 2.2 per cent to 250.35p as investors digested the update about pay TV customers in the period.

The benchmark FTSE 100 index closed down 46.96 points, or 0.6 per cent, at 7,443.43. Jasper Lawler, head of research at London Capital Group, said: “The market has reached some new extremes in sentiment during January and certain risk-factors, notably the rise in bond yields, could point to further stock market declines.”

Vodafone shares rose 2.4 per cent at 219.5p after it confirmed that it was in “early stage discussions” over a potential takeover of some of Liberty Global’s continental European assets.

Purplebricks blamed analysts at Jefferies for a slide in its share price as the estate agent refuted details contained in a research note issued by the broker. Shares had tumbled on Thursday after Jefferies said Purplebricks does not disclose how many homes it sells. But the firm hit back yesterday, saying it “firmly refutes the criticism”. Shares closed off 7.6 per cent at 418.6p.