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It is forecasting a faster-than-expected decline in its traditional fixed line voice business and added it was seeing tough competition in the data services market, which is forcing prices down on contract renewal.
It is forecasting "a strong increase" in profits for 2014, with higher dividends for shareholders.
It is forecasting inflation of just 1.3% next year, 1.5% in 2018 and 1.7% in 2019.
It is forecasting that profits will now be between £380m and £420m for the year to the end of April.
It is forecasting euro-area growth of 1.3% in 2005 and 1.6% in 2006, up from 1.2% and 1.5% respectively in October.
It is forecasting an average of 75 yen to the dollar for the rest of the fiscal year, which ends in March.
Similar(22)
It is forecast to grow by around 3.5% this year.
It is forecast to reach 11.4% of GDP by 2050.
It is forecast to run for several years.
It is forecast to grow just 1 percent this year and next.
In London it is forecast to be just 5%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com