JV with Verizon for its International business (ex Global Services)

Research evidence excerpt

JV with Verizon for its International business (ex Global Services)

Update

June 29, 2026 01:13 PM GMT

Morgan Stanley & Co. International plc+MBT Group plc | Europe Terence Tsui

Equity Analyst

JV with Verizon for its Terence.Tsui@morganstanley.com +44 20 7425-3095

BT Group plc (BT.L, BT/A LN)

ADRBT.NInternational business (ex Telecommunications Services | United Kingdom

Stock Rating Overweight

Industry View AttractiveGlobal Services) Price target 255p

Shr price, close (Jun 26, 2026) 195p

52-Week Range 242-173p

BT Group and Verizon announced that they will combine their respective

Mkt cap, curr (mn) £19,424

international operations in a 50:50 joint venture, creating a new company focused Net debt (03/27e) (mn)* £15,780

EV, curr (mn)* £36,119

on multinational connectivity. See press release here.

* = GAAP or approximated based on GAAP

The statement said that both BT and Verizon (covered by Sean Diffley) will hold

equal voting rights and Verizon has agreed to pay BT an equalisation payment of

$625 million.

BT adds that the transaction is expected to complete in 2027, subject to regulatory

clearances and other customary closing conditions.

Since BT's CEO started in early 2024, there has been a renewed attempt to scale

back BT's international exposure to become a more UK-centric Telecoms operator

(see May 2024 results' comments - here). Indeed, the company made 5 non-core

divestments in International during FY26. In FY26, International revenues were -15%

YoY and EBITDA was -19% YoY. Looking further back, International, formerly known

as Global Services, has been a source of multiple profit warnings (Eg, in Italy 2017).

Guidance has been updated (mainly affecting revenue) as BT said it will report its

international arm as a discontinued operation.