BT.A Bt Group Plc

By Kyle Morris

BT Group PLC said Tuesday that it was updating its estimates to reflect the reorganization of the company following the completion of the its sports joint venture with Warner Bros. Discovery.

The U.K. telecommunications group said the completion of the sports JV on Sept. 1 will reduce reported BT Group revenue for fiscal 2023 by 300 million pounds to 350 million pounds ($340.8 million and $397.6 million) as a result of seven months of the year's revenue transferring to the JV.

BT Group continues to expect underlying on year revenue growth on a pro forma basis.

Historical reported group financials are unchanged, it said.

Fiscal 2021 and 2022 group revenue has been reduced by GBP0.4 billion and GBP0.5 billion respectively on a pro forma basis to reflect both revenue allocation changes.

The JV's formation would have increased BT Group earnings before interest, taxes, depreciation and amortization by GBP42 million in the first quarter of fiscal 2023, and this would have reduced materially after.

BT Group doesn't foresee a material hit to the adjusted Ebitda outlook for fiscal 2023, being at least GBP7.9 billion. On a pro forma basis, it continues to see sustainable revenue and Ebitda growth beyond the current year.

Normalized free cash flow continues to be seen to be in the range of GBP1.3 billion-GBP1.5 billion.

BT added that all other guidance items remains unchanged.

On May 12, BT said it had finalized the sports joint venture in the U.K. and Ireland with Warner Bros. Discovery. As part of the agreement, the operating businesses of BT Sport will be transferred to Warner Bros. Discovery. The joint venture will combine BT Sport and Eurosport UK, with a portfolio including rights to the UEFA Champions League, the Premier League, UFC, the Olympic Games, tennis grand slams and the winter sports World Cup season.

Shares in BT Group at 0910 GMT were up 0.25 pence, or 0.2%, at 125.20 pence.

Write to Kyle Morris at kyle.morris@dowjones.com

(END) Dow Jones Newswires

October 18, 2022 05:54 ET (09:54 GMT)

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