Fixed-line telecoms stocks were making gains on Friday, helped by a strong rise from sector heavyweight BT Group which impressed the market with its third-quarter statement.

The company managed to beat profit forecasts in the third quarter as a result of "impressive" cost reduction, according to analysts at Nomura. Clean earnings before interest, tax, depreciation and amortisation (EBITDA) came in at £1.55bn in the quarter ended December 31st, some 1.6% better than the broker's estimate.

Shares were up 7.04% at 266.1p in afternoon trade after BT improved its underlying growth rate (excluding transit) from -5.5% to -3.1%. Revenues came in at £4.51bn, down 6.0% year-on-year but in line with Nomura's forecasts.

Meanwhile, the company announced a major new restructuring programme. Nomura, which maintained its 'buy' rating for the stock on Friday, said: "We expect this plan will allow them to argue that the current impressive cost reduction can be retained for the next two years. If this is confirmed, this may support further earnings upside for consensus."

A strong third-quarter statement from FTSE 250 communications services provider Kcom was also providing a lift in the telecoms sector after the company said it is seeing "positive momentum across all brands" in spite challenging market conditions. Shares surged 7.09% to 77p.

Elsewhere, AIM-listed internet and telecoms firm Daisy Group was up 1.01% at 100p after saying that it has bought The Net Crowd, an IT data specialist which provides services, maintenance and installations in the UK.

Sector peers TalkTalk, COLT and Virgin Media were also in demand.


Top performing sectors so far today
Fixed Line Telecommunications 3,102.71 +5.98%
Technology Hardware & Equipment 1,081.83 +2.91%
Electronic & Electrical Equipment 4,029.95 +2.62%
Forestry & Paper 8,240.09 +2.41%
Industrial Transportation 2,469.85 +2.02%

Bottom performing sectors so far today
Banks 4,943.42 -0.08%

BC

Related share prices
BT Group (BT.A) share price
COLT Group SA (COLT) share price
KCOM Group (KCOM) share price
Daisy Group (DAY) share price
Virgin Media Inc. (VMED) share price
TalkTalk Telecom Group (TALK) share price