BT Group has agreed to set up a new sports joint venture with Warner Bros. Discovery in the UK and Ireland.

Under the deal, BT will receive £ 93 million from Warner Bros. and up to £ 540 million from the joint venture if certain conditions are met.

JV 50:50 will unite BT Sports and Eurosport.

Theoretically, this should immediately improve the content on BT Sport and make business stronger if in the future bets on content such as UEFA Champions League rights.

This is a deal: BT Group has agreed to set up a new sports joint venture with Warner Bros Discovery in the UK and Ireland

BT has also signed a long-term agreement with Sky to share content, which is the latest sign of how the two former fierce rivals are increasingly working together.

BT boss Philip Jansen said: “We have completed the establishment of a sports joint venture with Warner Bros. Discovery to improve content delivery to customers by combining our business with new global content capacity. ”

Telecommunications giant BT today also announced final dividends of 5.39 annual shares, bringing the total dividend for the year before Share 7.7pa.

BT’s adjusted EBITDA rose 2 per cent to £ 7.6 billion and pre-tax profit rose 9 per cent.

But the telecoms giant’s annual revenue fell 2 percent to £ 20.9 billion as supply chain problems and a prolonged recovery after Covid-19 hampered its top line. £ 20.9 billion was below analysts’ estimates of around £ 21.4 billion.

BT said the trade was “on the right track” despite a drop in revenue seen last year.

The company has raised its savings target to £ 2.5 billion by the end of fiscal year 2025 after saving £ 1.5 billion in the last 12 months.

Responsible: Philipp Jansen is the head of BT Group

Responsible: Philipp Jansen is the head of BT Group

BT said customers’ complaints about BT’s broadband services were down 50 percent from the same period last year.

It adds: “For the first time, all BT brands are generating below-average or industry-wide complaints on landlines, broadband and mobile phones, according to the latest Ofcom complaints.”

EE continues to have the lowest proportion of complaints for mobile devices. ”

The group said it has about 800,000 customers on Home Essentials and other discounted or subsidized rates.

Jansen said: “BT Group has once again shown strong operational performance thanks to the efforts of our colleagues across the business. Openreach continues to grow like a rage, bypassing 7.2 million premises with 1.8 million connections; strong and increasing early absorption rate by 25 percent.

“Meanwhile, our 5G network covers more than 50 per cent of the UK population. We have the best networks in the UK and we continue to invest at an unprecedented rate to provide unmatched connectivity for our customers. At the same time, we are seeing record customer satisfaction rates across the business.

He added: “Our modernization is continuing at a pace and we are expanding our target cost savings of £ 2 billion by the end of fiscal year 24 to £ 2.5 billion by fiscal year 25.”

Looking ahead, Jansen said: “While the economic outlook remains challenging, we continue to invest in the future and I am confident that BT Group is on the right track. As a result, today we confirm our revenue growth forecast of 23 pounds, EBITDA of at least 7.9 billion pounds, and the recovery of our dividends for the entire 22 pounds, as promised, at 7.7 pence per share. “

shares BT rose in morning trading and now rose 2.13 percent or 3.75 pence to 180.20 pence. A year ago, the group’s share price was 169.05, up about 6 percent last year.

John Moore, senior investment manager at Brewin Dolphin, said: “BT has gone through a very difficult period, but today’s results tentatively show signs of more encouraging times for shareholders.

“The joint venture with Warner Bros Discovery is a potentially exciting development in a highly competitive market and continues to distinguish BT’s entertainment offerings.

“Meanwhile, strong Openreach performance and dividend recovery, despite expected revenue declines, are also positive. Overall, there is room for optimism, but BT’s capital expenditure commitments are likely to remain a headwind in the coming months. ”

City Index market analyst Joshua Warner said: “Deployment is accelerating, but the BT Group has a long way to go before its converged network, which offers faster connectivity, is fully unleashed across the UK.”

Keith Bowman, an investment analyst with Interactive Investor, said: “Overall, the competitive environment remains tense, and competitors like Sky are struggling to compete to win broadband services.

“The return on shareholders is also not the same as they once invested heavily in expanding the network. The cost of living crisis could also force some customers to cut insignificant purchases and subscriptions, including perhaps including BT’s pay-TV sports service. ”

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