LONDON (ShareCast) - Footsie has dipped into the red now, with BT’s disappointing results helping to offset more cheery news from the likes of HBOS and Shell.

BT dropped as a 1% increase in first quarter underlying core earnings at the telecoms giant was just below forecasts, although it kept full year guidance unchanged. Earnings before interest, tax, depreciation and amortisation (EBITDA) before specific items and leaver costs were up to £1.433bn from £1.425bn. Profit before tax and those items fell 7% to £613m, but a 3% hike in revenue to £5.18bn was higher than expected.

However, HBOS is one of the top risers after saying pre-tax profit fell 72% at during the first half to £848m from £3bn a year ago. Underlying profit before tax was 51% lower at £1.45bn. The results have been "significantly affected by £1.095bn of negative fair value adjustments," said the firm. Impairment losses increased by 36% to £1.3bn.

Shell's second quarter earnings rose 5% to $7.9bn on a current cost of supplies (CCS) basis, up from $7.6bn a year ago. Reported income was 33% higher at $11.6bn. Chief executive Jeroen van der Veer called it "another set of competitive earnings". "Good operating performance, combined with increased oil and gas prices, offset the impact of weaker downstream conditions in the second quarter 2008."

Centrica is also among the top gainers even though operating profit from continuing operations fell 19% in the six months ended 30 June to £992m, although it called its interim a “good” set of results in tough market conditions. The British gas-owner, which yesterday hiked gas prices by 35% and electricity prices by 9%, reported a 17% rise in revenue to £10bn.

A cautious Carphone Warehouse expects to add between 200,000 and 250,000 broadband customers this year with revenues at its UK fixed-line telecoms business broadly flat. That’s less than the increases of 400,000 and between 4 and 5% previously expected by the mobile phone and broadband supplier.

Strong metal prices helped Anglo American announce record half year underlying earnings of $3.5bn despite a 9.7% drop in revenue to $17.9bn. It expects a strong second half. "Despite the macro outlook for the second half remaining uncertain due to the evident slowdown in many developed economies, this is offset by continued strong demand, particularly from the developing economies, led by China," said boss Cynthia Carroll.

Prudential reported a "strong" half year in challenging conditions, with new business Annual Premium Equivalent sales up 12% to £1.5bn and European Embedded Value (EEV) new business profit up 11% to £602m. Asset management net inflows were £4.1bn versus £5bn in 2007. The company expects Asian economic growth to remain strong but beneath the peak levels of recent years, but CEO Mark Tucker says "prospects for the group remain positive".

Next is constrained by tough trading conditions, SG Securities said as it lowered its recommendation on the fashion retailer to ‘sell’ from ‘hold’ after Wednesday’s trading statement.

Morgan Stanley has cut its target price on Schroders to 975p from 1,160p after reducing its earnings per share estimates on the fund manager by 10% for 2008 and by 8% for 2009.

RBS has lifted its target price on Arm Holdings to 93p from 83p, saying that the microchip designer’s physical intellectual property division may be turning around.

The fourth quarter saw BSkyB add 92,000 net new customers, well ahead of forecasts, with another 200,000 broadband customers also better than expected. Year adjusted operating profit was £752m on revenue up 9% to £4.95bn, in line with forecasts.

Lucky Strike and Benson & Hedges maker British American Tobacco rolled out a 16% hike in half year profit after strong demand from emerging markets such as South Africa and Russia. Pre-tax profit rose to £1.83m for the six months 30 June 2008 from £1.6m the year before. Revenue rose 17% to £2.92bn.

• News Channel