Telecoms group BT's turnover edged ahead during the last six months but it cautioned it was unlikely to meet three-year revenue targets in current market conditions.

The group said turnover for the six months to September 30 rose two per cent to £9.25 billion while pre-tax profits were up 57 per cent at £818 million.

But its ambitious growth targets, outlined in April, of six per cent to eight per cent in the next three years had become tougher to achieve.

Chief executive Ben Verwaayen said BT's performance in the last quarter was good amid the difficult market for telecoms firms.

He said: "Although the three-year revenue target of six per cent to eight per cet compound annual growth is unlikely to be achieved in the present market conditions, we expect total revenue growth for the second half to be in line with current market expectations."

The group originally announced its three-year targets in April, under plans to cut costs, drive growth and improve customer service.

The plans were unveiled by Mr Verwaayen, who joined in February.

Part of the cost savings included plans to reduce staff numbers by 5,000 to 6,000 each year for three years.

BT said it would cut debt, which once hit £30 billion, to less than £10 billion in the three years.

It also planned to start paying dividends again after missing a year last time.

Chairman Sir Christopher Bland said BT would be paying an interim dividend of 2.25p a share.

He said a recently-announced agreement to sell its stake in Cegetel, which controls French mobile operator SFR, would cut net debt by £2.5 billion.

The results demonstrated BT's ability to reduce debt, reward its shareholders and invest for the future.

BT's three-year plan followed a period of transformation in which it sold a host of stakes in foreign firms and demerged its BT Cellnet mobile phone business, since renamed O2.