BT Group and Verizon will put their international enterprise businesses into a 50:50 joint venture, the companies said on June 29. BT also cut its outlook for fiscal 2027 to reflect the move. BT shares were up about 1.13 percent in London at 197.20 pence. Verizon was down 3.7 percent on the NYSE at $44.81.
BT International will be combined with Verizon’s international enterprise wireline arm, which supplies secure connectivity to companies around the world. The venture is meant to serve more than 3,000 customers in over 180 countries, with about $4 billion in combined annual revenue. The partners describe it as a platform built for the age of cloud and AI.
Both will hold equal voting rights. Verizon agreed to pay BT an equalisation payment of $625 million.
Leadership and timing
Martijn Blanken has been named chief executive-designate of the venture, subject to completion of the deal. He joins BT on September 1 and will work with both parent companies. Clive Selley stays on as chief executive of BT International, and Verizon’s leadership is unchanged.
Completion is expected in 2027, pending regulatory clearances and other customary conditions. Until then the two international businesses keep operating separately. The companies say the venture will let each parent concentrate on its home market while supporting the new business as an equal shareholder.
BT’s revised guidance
Once the deal is done, BT International will be reported as a discontinued operation, so BT restated its fiscal 2027 outlook without it. Adjusted EBITDA is now forecast at £8.1 billion to £8.2 billion, against £8.2 billion to £8.3 billion before, when the international unit was included. Adjusted revenue is now expected at £17.1 billion to £17.6 billion, down from £19 billion to £19.5 billion.
For fiscal 2026, BT reported adjusted EBITDA of £8.2 billion on adjusted revenue of £19.6 billion. Company-compiled consensus estimates for BT International in fiscal 2027, as of June 19, stand at adjusted EBITDA of £108 million and adjusted revenue of £1.82 billion.
Capital expenditure, excluding spectrum, is now guided at £4.2 billion to £4.3 billion without the international unit, compared with about £4.3 billion earlier. BT kept its mid-term guidance of sustained growth in adjusted EBITDA and revenue, and reaffirmed expected annual dividend growth in the low-to-mid single digits.
