BT has finalized the sale of its remaining stake in its Italian unit to local telecommunications company Retelit. Although the financial specifics were not disclosed, the unit reportedly generated €160 million in revenue last year.
This acquisition bolsters Retelit’s presence in the Italian market. According to Retelit, this move enhances their ICT infrastructure services and supports their clients’ digital transformation. Karen Egan from Enders Analysis noted that the Italian unit has long been problematic for BT, who will likely be relieved to see it sold.
This sale aligns with Allison Kirkby’s strategy to focus BT’s efforts on their core UK market. Last year, the company achieved its cost-cutting target of £3 billion a year early by reducing jobs. BT plans to save an additional £3 billion by 2029, doubling down on efficiency through automation and AI.
Furthermore, the recent UK budget presents additional challenges. The increased National Insurance contributions could cost BT £100 million annually. To mitigate these financial pressures, Kirkby suggests that costs might be transferred to mobile and broadband customers.
