BT Ireland announced a 4 per cent increase in revenues to £739.9 million (€876 million) for the year to the end of March.

The telecoms group, however, said profit was flat year-on-year as investment in several large retail and wholesale contracts offset by continued cost transformation initiatives.

BT Ireland’s wholesale division had a strong performance in the Republic of Ireland, despite the ongoing impact of regulated mobile termination rates and market consolidation, the company said.

Key wholesale contracts signed during the year included Sky Ireland, AirSpeed Telecom and UTV.

“Despite the tough conditions and the continued market trend towards lower contract order values and longer lead times, our business division increased revenues year on year.”

The company added Allianz, Bank of Ireland, Irish Life, the Department of Justice and Equality and the Office of the Revenue Commissioners to its client list.

The company reported a strong performance in its Irish consumer division, driven by a bigger take-up in its fixed line services, particulary in Northern Ireland.

Colm O’Neill, chief executive, BT Ireland said: “”We continue to manage our cost base carefully, while making investments in the future of our business to support our customers and to improve our service.

Separately, the company’s UK parent reported fourth-quarter profit that beat analysts’ estimates as it added more customers to its high- speed Internet service to compensate for falling landlines.

Adjusted earnings before interest, tax, depreciation and amortization rose 4 per cent to £1.67 billion in the quarter ending in March, the London-based company said today in a statement. The comapny said its revenue fell 5 per cent to £18.3 billion over the past 12 months, though pre-tax profit was up 2 per cent to £2.5 billion.

BT yesterday threw down the gauntlet to BSkyB by offering free live Premier League action to football fans for the first time.

The British telecoms giant, which is muscling in on Sky’s dominance of sport after winning a three-year deal to show 38 Premier League games a season, also cut its broadband prices for new customers.

BT’s offer of free top flight football to new and existing broadband customers sent shares in BSkyB sliding more than 7 per cent. It also plans to wrestle pubs from Sky with a sports package which it claims could be 78 per cent cheaper than its rival.

BT chief executive Ian Livingston said: "UK sports fans have had a rough deal for too long. "Many have been priced out of the market but we will change this by giving away BT Sport for free with our broadband. Sports fans are the winners today."

Sky responded by labelling it a “marketing gimmick” designed to halt its loss of broadband customers.

Analysts said Sky is likely to cut prices in response to BT’s “gamble”, but said a “mass exodus” is unlikely.

BT Sport will run from three studios in the broadcast centre used by the world's media during the London 2012 Games in Stratford, east London. Its channels will also show 69 live Aviva Premiership rugby games per season, plus live football from leagues in Germany, France, Italy and Brazil.

The sports channels will launch in August, although the exact date has not yet been confirmed. Sky has refused to air BT's advertisements for the new channels, prompting BT to complain to media watchdog Ofcom.

BT is offering pubs and clubs 12 months’ subscription for the price of nine, which it said works out at £135 per month for many independent pubs.