BT Group's reported revenues fell by 1% to £5,949m in the six months to the end of September and underlying revenue was down 1.5% but the full-year outlook has been maintained.
Adjusted EBITDA fell 4% to £1,811m, reflecting investment in sports rights and customer experience, along with higher pension costs, business rates and decline in Global Services partly offset by cost savings.
Net cash inflow from operating activities of £1,270m was down £464m, and normalised free cash flow of £689m was down £205m due to working capital phasing and higher capital expenditure.
The interim dividend for future years will be fixed at 30% of prior year's full year dividend.
The interim dividend for this year was held flat at 4.85 pence per share.
Chief executive Gavin Patterson said: 'Our first half results are in line with our expectations as encouraging results in our consumer facing lines of business, notably EE, helped offset ongoing challenges in our enterprise divisions, in particular Global Services.
'Given our underlying business performance, we are maintaining our outlook for the year.
'As the UK's leading converged telecommunications provider we continue to make positive progress on all our strategic priorities.
'Improving customer experience is critical to our success and we have seen continued positive progress underpinned by investments in operational improvements, increased network quality and customer-centric product development.
'Our integration and restructuring programmes are also on track to deliver run-rate savings of £250m and £150m respectively by the end of this year. We are working closely with the UK Government, Ofcom and our Communications Provider partners to find the right solutions to accelerate the deployment of fibre and our universal broadband commitment.
'We are committed to delivering ultrafast speeds to 12 million premises by the end of 2020.
'From next year the interim dividend per share will be fixed at 30% of the prior year's full year dividend.
'However, in this transitional year, we are proposing to hold our interim dividend at 4.85 pence per share.
'Our progressive dividend policy remains unchanged.'