A decline in the wholesale business and a flat performance in the global services business hit BT in the second quarter.
The telco giant saw its Global Services division increase revenues by just 1% for the three months ended 30 September to £2.01bn from the same period a year ago.
One of the big deals for the Global Services division came from a contract to provide support to Best Buy Europe's stores but a lot of the focus is on plans to double the business coming out of Latin America.
The Openreach operation was the main bright spark with a 4% climb in revenue but the retail operation was another area that disappointed with a 3% revenue drop year-on-year to £1.8bn.
The impact on overall Group revenues was to produce a 2% decline in revenues to £4.89bn although reported pre-tax profits increased by 36% to £552m.
Ian Livingston, chief executive at BT, said that it had managed to improve its operational processes which had helped produce better profits.
"We expect to continue to offset the economic headwinds through improved customer service and processes, better efficiency, and investment in the future of the business," he said.
He added that it had accelerated the roll-out of fibre in the UK and was getting government support on the infrastructure project, which will create 520 jobs.