BT to Carve Out International Business in Strategic Move

BT is set to establish an independent international division as part of its broader shift to prioritise its UK-focused operations. The move, which will impact more than 8,000 employees, aims to enhance the company’s focus on its core domestic market. Allison Kirkby, who took over as BT’s Chief Executive last year, has made clear her ambition to streamline the FTSE 100 telecoms giant and refocus on its core broadband and telecoms business in Britain.

The newly carved-out unit will be led by Bas Burger, the head of BT Business. Burger, a seasoned Dutch executive who has been with the company since 2008, will oversee the division. BT is exploring three potential paths for the international business: a sale, a merger with a competitor, or a transformative business overhaul. A spokesman emphasised that the creation of the standalone unit aligns with BT Group’s strategy to concentrate on domestic growth.

BT’s international operations have seen a notable decline in recent years. Revenues from its global ventures fell from £5 billion in 2017 to approximately £2.4 billion for its most recent financial year, now accounting for just 11 per cent of total sales. The fluctuating profitability of overseas markets has posed ongoing challenges, prompting the company to reconsider its strategic priorities outside the UK.

The telecom giant has made several divestments in recent years to streamline its international operations. In 2024, BT sold its Italian subsidiary BT Enìa to Retelit and is in talks to sell its remaining Italian operations. Earlier this year, the company sold its Irish enterprise and wholesale business to Speed Fibre and agreed to divest two Dublin data centres to Equinix for £49 million. BT has also approached AT&T and Orange as potential partners to explore the future options for its global business.

Since taking the reins in February 2024, Allison Kirkby has embarked on a strict cost-cutting programme as part of her broader restructuring initiative. Investor confidence has grown under her leadership, with BT’s share price increasing by over 50 per cent during her tenure. Shares rose once again by 1.8 per cent this week, closing at 165p.

BT, which was privatised in 1984, also owns the EE mobile network, with all consumer offerings recently rebranded under EE. Additionally, the company owns TNT Sports in a joint venture with Warner Bros Discovery. Although its domestic market strategy is now the primary focus, the future of BT’s international business is expected to develop further in the coming months as the company considers its next steps for the carved-out division.