BT will report full year results this week with analysts expecting earnings before tax of £2.03bn for the fourth quarter.
Paul Marsch, analyst from private bank Berenberg, said: "We also factor in a higher cash contribution to the pension fund, which we believe will arise from the triennial review that will conclude in early 2018. Finally, we reduce our dividend growth expectations, bringing forward a reduced growth rate of 5 per cent to FY18E from FY19E before."
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Berenberg believes there is scope for a slight upward trend in BT’s upcoming full year results, driven by its Global Services (GS) and Business and Public Sector (BPS) businesses.
"Expectations (our own included) may have become overly cautious on GS and BPS following the profit warning, to the tune of a few tens of millions at EBITDA level," said Marsch.
BT's full year results come after Sky News reported an expected dock in the six-figure pay packages of the telecom's chief executive Gavin Patterson and its former finance director Tony Chanmugam.
BT has had a torrid year due to a £530m accounting scandal at its Italian operations.
The UK telecom announced an external investigation into potential accounting problems at its Italian business in October last year. A number of accounting irregularities occurred, including the use of complex debt factoring structures to hide the true performance of the business.
As a result of the scandal, BT decreased in value by £8bn and its shares fell from 382.55p to 303p, its lowest level since June 2013. They have since climbed to 309p as of Sunday.
In addition to the misconduct in Italy, BT have been fined £42m by Ofcom for failing to adequately compensate rival broadband providers over delayed installation appointments.
The full year results are expected on Thursday.