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REG - BT Group PLC - BT Group to combine Enterprise and Global units

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RNS Number : 9175J  BT Group PLC  16 December 2022

 

16 December 2022

BT GROUP TO COMBINE ENTERPRISE AND GLOBAL UNITS TO CREATE

BT BUSINESS

 

BT Group has today announced that it will be combining its Global and
Enterprise units into a single B2B unit, BT Business. The combined unit will
enhance value for all our B2B customers, strengthen our competitive position,
and deliver material synergies by:

·    Leveraging the full scale and capabilities of BT Group to develop and
deliver market-leading products and services for all our B2B customers,
including next generation connectivity and unified communications, multi-cloud
networking, and advanced security solutions.

·    Creating a single interface to BT Group for our corporate customers
and public sector institutions, combining our vertical sectoral expertise and
capabilities, and removing the current duplication between Enterprise and
Global.

·    Driving significant and rapid gross annualised cost savings of at
least £100m by the end of FY25 through consolidation and rationalisation of
management teams, support functions, product portfolios and systems.

 

BT Business will be led by Bas Burger the current CEO of BT's Global unit. Bas
joined BT Group in 2008 and prior to the Global role was responsible for BT
Americas. Before joining BT Group, Bas was executive president and a member of
the management committee of Getronics NV, where he ran global sales, channels
and partnerships, developing the company's international business. He was also
CEO and managing director of KPN Entercom Solutions.

 

This will create a simpler BT Group with three Customer Facing Units: Consumer
supporting UK consumers; BT Business supporting business and public sector
customers; and Openreach delivering UK nationwide fixed access infrastructure.

Announcing the formation of BT Business, BT Group Chief Executive Philip
Jansen said:

"BT Group is a leading provider of B2B connectivity and related services to UK
and multi-national corporations, government and public sector organisations
worldwide, as well as UK SMEs(1) and SoHos(2). BT Enterprise is the market
leader in the UK, with a market share of 30% underpinned by BT Group's fixed
and mobile network leadership, the strength of the BT brand, and national
sales, service and distribution. BT Global serves many of the world's largest
companies and is consistently rated as a leader for its networking and
security services and has ambition to be the leading provider of secure
multi-cloud connectivity."

 

"By combining the two units, BT Business will bring the Group's combined
assets, products, capabilities and brand to the service of all of our 1.2m
business customers who will benefit from faster innovation and delivery. Bas
is an excellent leader and I'm confident he will build on the plans already
underway and drive the combined business back to growth."

 

(1)Small and Medium Enterprises

(2)Small Office/Home Office

BT Business will create a B2B focused telecoms and technology business which
in FY22 generated pro-forma revenues of approximately £8.5 billion and EBITDA
of over £2 billion.

 

The formation of BT Business is expected to deliver at least £100m of gross
annualised savings by the end of FY25. These will contribute to BT Group's
previously announced target to deliver £3bn in gross annualised savings
across the same timeframe.

 

BT Business will continue to invest in the skills, technology and partnerships
required to achieve its ambition of returning to growth and become the leading
provider of secure multi-cloud connectivity.

 

Bas will lead the new unit from 1(st) January 2023 and it will commence
reporting as a single unit from 1(st) April 2023.

 

The CEO of BT Enterprise, Rob Shuter, will support Bas with the integration
over the next few months and will then be leaving BT to step down from
executive life and spend more time with family and on his personal interests.

 

Philip Jansen commented:

"Throughout the past two very challenging years, Bas and Rob have provided
outstanding leadership. Covid accelerated a shift in the market as people and
businesses changed the way they worked, whilst macro-economic factors have
disrupted supply chains and put pressure on businesses and the public sector
globally. Despite this, we've made progress and our customer satisfaction
scores have improved, in some cases to an all time high. I am grateful to Bas
and Rob for laying the foundations that enable us to take this next step in BT
Group's transformation."

"Bas and the Global and Enterprise teams will now work out the details of the
integration over the next few months. I would like to reiterate my thanks to
Rob for his contribution to BT over the last two years and wish him well for
the future."

Ends

 

About BT

BT Group is the UK's leading provider of fixed and mobile telecommunications
and related secure digital products, solutions and services. We also provide
managed telecommunications, security and network and IT infrastructure
services to customers across 180 countries.

BT Group consists of four customer-facing units: Consumer serves individuals
and families in the UK; Enterprise and Global are our UK and international
business-focused units respectively; Openreach is an independently governed,
wholly owned subsidiary, which wholesales fixed access infrastructure services
to its customers - over 650 communication providers across the UK.

British Telecommunications plc is a wholly owned subsidiary of BT Group plc
and encompasses virtually all businesses and assets of the BT Group. BT Group
plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about (https://www.bt.com/about)

 

 

 

  Enquiries
 Press office:
 Tom Engel             Tel: 07947 711959

 Investor relations:
 Mark Lidiard          Tel: 0800 389 4909

 

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