TALKTALK is signing up customers to its TV service faster than rivals Sky, BT and Virgin Media combined, with over a million customers using the service just 18 months after launch.
The announcement came as TalkTalk reported revenue growth of 3.4 per cent to £1.7bn for the year to 31 March, in line with market forecasts and its first full year of revenue growth since its demerger from Carphone Warehouse in 2010.
“We continue to grow faster than all the other UK TV operators put together and are confident that in time, all our customers will take TV,” said chief executive Dido Harding.
“We are on track to deliver our financial targets by full year 2017, and are increasingly excited about the longer term growth opportunities beyond. As a result we are committing to another year of growing the dividend by no less than 15 per cent in 2015.”
Profits fell 74.6 per cent to £31m during the year as TalkTalk hiked its investments in TV and mobile.
“2015 is set to see a material return to growth at TalkTalk following its large TV investment in 2014. We see TalkTalk’s high growth versus the sector and increasing strategic value as attractive given its discount valuation to the sector,” said Goldman Sachs’ Andrew Lee.
TalkTalk’s shares fell 2.44 per cent on the news to 284.3p yesterday.