BT has reported profits down by $4.48 billion for the first quarter of 2012.

While profits were down further than expected, cost cutting measures had allowed the telecommunications giant to raise profit before tax by 8 percent.

The cost savings included an increased dividend combined with a solid yearly performance despite widespread economic concerns in the marketplace.

Chief Executive Ian Livingston said: "BT Global Services was impacted by the tough conditions in Europe and the financial services sector."