BT Shares Rise on Verizon Joint Venture Strategic Shift

Key Moments

Strategic Joint Venture Lifts BT Stock

BT Group shares rose 1.9% to 198.75p. The company announced a major deal with Verizon Communications.

Under the agreement, both firms will create a 50:50 joint venture. As a result, they will combine their international enterprise units.

Moreover, the new structure aims to strengthen global connectivity services. It also allows both companies to focus more on domestic markets.

Financial Terms and Operational Scope

Under the deal, Verizon will pay BT $625 million. This equalization payment will go directly to BT.

In addition, the joint venture will serve over 3,000 customers. It will operate in more than 180 countries. Combined annual revenue will reach about $4 billion.

The new entity will bring together BT International and Verizon’s international operations. Therefore, it will target cloud and AI-driven enterprise services.

The transaction is expected to close in 2027. However, it still depends on regulatory approvals.

Revised BT Guidance for FY27

BT updated its FY27 outlook after the deal. It lowered adjusted group revenue guidance to £17.1–£17.6 billion. Previously, it had forecast £19.0–£19.5 billion.

The company made this change because it now treats the International division as discontinued.

However, UK service revenue guidance remains unchanged at £15.1–£15.4 billion. This shows stability in the core domestic business.

Adjusted EBITDA, excluding International, is now expected at £8.1–£8.2 billion.

Market Reaction and Trading Context

Investors responded positively to the announcement. BT shares briefly hit 199.55p during the session.

Meanwhile, the FTSE 100 fell 0.20% on the day. Weak sentiment followed cautious comments from the Bank of England.

BoE chief economist Huw Pill warned about persistent inflation. UK CPI stayed at 2.8% in May, above the 2% target.

Despite market weakness, BT outperformed. The Verizon deal acted as a strong company-specific driver.