UK telecoms and broadcasting group BT on Thursday said it was moving its sports TV division into a 50-50 joint venture with Warner Bros Discovery as it also reported a small rise in adjusted annual core earnings after revenue fell 2%.
The company posted adjusted earnings of £7.5bn, up 2% as revenue fell by 2% to £20.84bn.
BT said it would transfer the operating businesses of BT Sport to the newly-merged US broadcaster which owns the Eurosport channel.
The deal will see the new entity offer sports such as football’s UEFA Champions League, the UK Premier League, Premiership Rugby, the Olympic Games, tennis grand slams and cycling’s Tour de France and Giro d’Italia.
Warner will hold a call option to buy BT’s stake at specified points in the first four years of the venture at a price to be determined.
BT will receive an initial £93m from Warner Bros Discovery and up to £540m in an earn-out from the joint venture.
