BT and Verizon have agreed to combine their international operations into a 50:50 joint venture. The new entity will have a combined annual revenue of around $4bn, and serve around 3,000 multinational organisations.
BT will receive a $0.6bn payment from Verizon as part of the transaction.
The transaction is expected to complete in 2027, subject to regulatory approvals.
As a result of the transaction, BT has trimmed its full-year revenue guidance by around £2bn to £17.1-17.6bn. Underlying cash profit (EBITDA) is now expected to be £8.1-8.2bn, slightly lower than previously guided.
The shares rose 1.4% in early trading.
Our view
HL view to follow.
BT key facts
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