BT has reported 4% rise in its profits during the fourth quarter of 2012 to £1.67bn, compared to the corresponding quarter in the previous year.

During the quarter, the firm’s revenues reached £4.78bn, a 2% drop from the same quarter in 2012.

BT’s full-year profits rose by 2% to £6.18bn, while revenues dropped by 5% to £18.25bn.

BT chief executive Ian Livingston said that in an environment where it was easier to concentrate only on the short-term, the company is investing in its future and delivering growth in profits and dividends.

"We are driving fibre across the UK, launching high quality sports channels, investing in the high-growth regions of the world and will use our wi-fi capabilities and 4G spectrum to make sure our customers will be the best connected," Livingston said.

"Our focus on improving efficiency across the business will allow us to continue to deliver strong financial results while making these investments."

During the last three month period, BT signed up about 40,000 pay TV customers, taking its overall users to 810,000.

Recently, BT, which has launched two new sports channels, has been using its newly acquired Premiership broadcasting rights to undo the conventional pay TV model.

Additionally, BT has signed a £146m deal to offer fibre-optic broadband across Scottish Highlands and Islands, as well as a £48m deal with Lincolnshire County Council to improve the broadband network with fibre optic cables.