BT Retail, the consumer division of telecommuncations giant BT Group is set to show double-digit growth for the financial year ending next March.

The new financial guidance issued last week also forecast operating profit growth into 2008, in contrast to market expectations.

The company has recently bet a number of new initiatives aimed at consumers and small to medium sized businesses (SMBs) on building its business. It launched the converged wireless broadband and phone calling BT Home Hub earlier this year, and its BT Vision web-based TV on demand service last week that will eventually link with the Hub product.

In addition to the success of its internet-based consumer products in the face of falling fixed-line revenues, the company last Friday extended its combined mobile and wireless broadband telephone service, BT Fusion to SMBs.

BT Retail's Enterprise division, which includes the online store, conferencing, directories and payphone services, will have revenue and operating profit growth of about 25% in fiscal 2007, the company said. BT acquired UK retailer in August to expand online sales of consumer digital products.

This division has also been part of BT’s expansion into the consulting and networked managed services market. Its Expedite arm launched an array of new software and networked services aimed at retailers, signing up WHSmiths and Halfords.

BT Group is a massive IT user itself, ranked second in this year’s MIS/CIO 100 biggest enterprise IT users. The CIO of BT Retail, Maria Pardee at the time told the magazine: “BT is now having to be agile in ways not typified by an old style telecoms company. The telecoms industry is now a lot more than voice – it is about flexibility, communications and even entertainment.”