BT raises outlook on strong fourth quarter

LONDON Fri May 10, 2013 2:14am EDT

LONDON May 10 (Reuters) - Britain's BT raised its core earnings and cash flow outlook on Friday after cost cuts and strong demand for broadband helped it to post full-year results slightly ahead of expectations.

The telecoms group posted full year core earnings up 2 percent to 6.2 billion pounds ($9.6 billion), ahead of a consensus of 6.1 billion pounds, off revenue that was down 5 percent. It raised the dividend by 14 percent.

The group also announced a share buyback of around 300 million pounds for this year and next.