TalkTalk revenues dip but consumer growth rises

 
Emma Haslett
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Jonathon Ross (L) stands with Charles Du
Wossy and the bossy: Charles Dunstone (right) was parachuted in as executive chairman this year (Source: Getty)

After a wobble earlier this year, TalkTalk has posted figures showing revenues fell in its first quarter.

The figures

Revenues fell 3.2 per cent year-on-year in the three months to the end of June, as strong growth in its corporate and wholesale broadband revenues was offset by a fall in consumer revenues.

The company added 20,000 new consumer and wholesale customers, after a decline of 9,000 during the same period last year. It also said it reduced churn to 1.2 per cent, from 1.4 per cent last year.

Meanwhile, it added 2,000 new business ethernet lines, taking its total to 44,000.

Full-year guidance remained unchanged, with base and revenues expected to grow during the year, while earnings before interest, taxation, depreciation and amortisation are expected to fall somewhere between £270m and £300m.

Why it's interesting

It's been a year of change for TalkTalk, which in February lost its chief executive, Dido Harding, after seven years in the role. She was replaced by Tristia Harrison, while Carphone Warehouse founder Charles Dunstone, also its largest shareholder, was parachuted in as executive chairman.

But in May shares plunged after it admitted it was cutting dividends as it struggled with poor customer service ratings in the aftermath of a massive hack, which affected 157,000 customers.

However, there is some encouraging news for the company, which could be in line for £60m of compensation from BT: its Openreach broadband division was issued with a record fine by Ofcom in March after it failed to pay out for broadband installation delays.

What TalkTalk said

Today Harrison said:

In May, we announced a clear reset of the business, simplifying our operating model to focus on providing best-value fixed connectivity to consumers and businesses.

While still early days, the last quarter shows a strong start to the year, delivering continued growth across both consumer and B2B; strong take-up of our radically simpler fixed price plans and, most importantly, lower churn.

This is testament to the fact that both consumers and businesses are looking for fixed connectivity that is simple, affordable, reliable and fair. We look forward to sustaining this momentum over the coming months.

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