A surprise dividend increase did not prevent Telstra’s share price falling in response to chief executive Andy Penn’s profit result as analysts warned that underperformance in fixed telephone lines threatened to undercut growth in the nation’s dominant telco.

The result, Mr Penn’s last as chief executive, met a lukewarm reception from investors, with shares dipping 1.25 per cent to $3.96, even as the S&P/ASX200 rose 1.12 per cent to 7071 points.