TalkTalk continues to make progress towards its medium term goals, with another quarter of steady customer additions, upselling to the existing base driving revenues up three per cent and churn 0.1 percentage point lower to 1.4 per cent. Our estimates are broadly unchanged.
CARL MURDOCK-SMITH | JP MORGAN CAZENOVE
Churn reduction to 1.4 per cent versus our estimate of 1.5 per cent is impressive given May price increases. TalkTalk has also expanded its content relationship with Sky to include Sports & Movies catch-up content, Sky Sports 5 and Sky Sports Box Office. We believe consensus will remain unchanged.
PAUL SIDNEY | CREDIT SUISSE
TalkTalk’s revenue was in line with our and consensus expectations and represented annual growth of 3.1 per cent, the sixth consecutive quarter of annual growth. TalkTalk reported more than 10,000 broadband adds, the seventh consecutive quarter of positive adds. All existing guidance is reiterated.