BT Group trims 2027 guidance after Verizon joint venture, shares react on LSE

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-29, 10:35.

BT Group (GB0030913577) set a clear strategic marker this Monday by agreeing a 50:50 joint venture with Verizon for their international enterprise businesses, with combined annual revenue of about $4 billion, while trimming its fiscal 2027 guidance to reflect the carve-out as reported in London where the shares trade on the London Stock Exchange. The move comes with BT stock rallying around 1.9 percent to roughly 198.75 pence after the announcement, according to Investing.com.

What BT disclosed on the Verizon deal

LONDON - BT Group plc said it will fold BT International into a new jointly owned entity with Verizon’s international enterprise division, creating a platform expected to serve more than 3,000 customers across more than 180 countries and generate about $4 billion in annual revenue, according to a press release summary cited by Investing.com. As part of the arrangement, Verizon will pay BT a $625 million equalization payment, giving the UK telecom group an immediate financial benefit and additional flexibility for its continuing operations.

BT’s announcement means the International division will be treated as a discontinued operation until the joint venture completes, which is expected in 2027 subject to regulatory clearances and customary conditions, as highlighted in the same analyst note. Bloomberg’s Stock Movers segment also flagged BT among the day’s notable names on the London market on the back of the joint venture headlines, underlining that the deal is seen as a significant portfolio reshaping rather than a marginal adjustment.

How BT’s 2027 guidance shifts with the carve-out

To align its outlook with the carve-out of BT International, BT lowered its adjusted group revenue guidance for fiscal 2027 to a range of £17.1 billion to £17.6 billion from the prior £19.0 billion to £19.5 billion that still included the international business, according to an Investing.com summary of the company’s guidance update. Adjusted EBITDA guidance has been trimmed to £8.1 billion to £8.2 billion, down from the earlier band of £8.2 billion to £8.3 billion, again reflecting the discontinued nature of the International division.

Capital expenditure excluding spectrum is now forecast at £4.2 billion to £4.3 billion, compared with the previous indication of around £4.3 billion when BT International was still fully consolidated, signalling a modest reduction as BT focuses its spending on the core UK network and services. The group kept its normalized free cash flow target of about £2.0 billion for fiscal 2027 intact and reiterated that its dividend policy is unchanged, continuing to aim for low-to-mid-single-digit annual growth in total payouts, according to the same guidance disclosure.

The business behind the BT Group stock

BT Group generates most of its revenue in the UK through fixed-line and mobile connectivity under brands such as BT, EE and Plusnet, offering broadband, telephony and converged services to households and enterprises. Beyond consumer access, the company provides managed network services, security solutions and cloud connectivity for corporate and public sector clients, while Openreach operates the wholesale access network that other providers use to reach end customers.

Where BT Group shares trade today

BT Group shares (GB0030913577) trade on 2026-06-29 at around 198.75 pence on the London Stock Exchange after ticking up roughly 1.9 percent in response to the Verizon joint venture announcement, according to Investing.com’s real-time quote.

This text is for informational purposes only and does not constitute investment advice, investment recommendation or an offer or solicitation to buy or sell any financial instrument. Readers should conduct their own research or consult a qualified advisor before making investment decisions.