Telecoms stocks were given a boost on Thursday after sector heavyweight BT Group surged on the back of its interim results, with investors celebrating a 15 per cent increase in the dividend and a seven per cent rise in adjusted pre-tax profits.

Adjusted profit before tax climbed 7% to £608m from £570m in the second quarter of the previous fiscal year, as costs fell and margins rose, compensating the 9% fall in adjusted revenues from new regulation.

"We have delivered another solid quarter of growth in profit before tax despite the economic conditions and regulatory impacts," declared Ian Livingston, Chief Executive of BT.

Analysts at Nomura, who reiterated their 'buy' rating on the stock today, praised BT's "impressive delivery on costs".

"The market's concerns that Global Services weakness, unhelpful regulation and general economic malaise would drip through to BT's profitability performance and affect its guidance targets have not materialised," the broker said.

Sector peers Inmarsat, Avanti Communications and Cable & Wireless Communications were also making gains this afternoon, with the latter being given a lift by a broker note from UBS.

UBS today raised its target price for C&W Comms from 30p to 35p ahead of the group's first-half results on November 8th.


Top performing sectors so far today
Fixed Line Telecommunications 2,687.76 +6.58%
Technology Hardware & Equipment 873.88 +3.33%
Banks 4,238.75 +3.15%
Personal Goods 19,054.43 +3.02%
Industrial Metals & Mining 2,626.44 +2.28%

Bottom performing sectors so far today
Forestry & Paper 7,206.04 -1.91%
Health Care Equipment & Services 3,675.98 -0.54%

BC

Related share prices
BT Group (BT.A) share price
Cable & Wireless Communications (CWC) share price
Inmarsat (ISAT) share price
Avanti Communications Group (AVN) share price