Talk Talk has said it will be moving its headquarters to Salford next year, taking "the vast majority of London roles" with it as it announced rising profits and plans to roll out full-fibre broadband across the UK.
As the telecoms giant ramps up cost efficiency plans, Talk Talk said it believes the move to be "crucial" to aligning its headcount with its operating business model.
The company's share price fell more than three per cent in early trading.
Core revenue for the six months to September 2018 was £808m, up 0.9 per cent from £801m in the same period in 2017. This was attributed to an increase in customer base, which grew by 24,000 users in the second quarter.
Profits before tax swung to a profit of £6m, rising from a loss of £14m a year ago.
Operating expenses were reduced to £324m from £333m in 2017, reflecting Talk Talk's ongoing cost-cutting initiatives.
An interim dividend of 1.00p, down from 2.50p in the same period last year, was recommended by the board.
Talk Talk said it expects to add more than 150,000 customers by the end of this financial year, as core earnings remain in line with company expectations.
Additionally, Talk Talk today announced an acceleration of its move towards full-fibre broadband with the launch of a new subsidiary Fibrenation. Building on an initial trial in York, Fibrenation will roll out broadband to up to 60,000 homes in Harrogate, Knaresborough and Ripon.
This is expected to increase the company's overall footprint to over 100,000 homes by mid-2020.
Why it's interesting
The move away from its London base is part of Talk Talk's plans to establish itself as a northern brand in the UK, as well as to switch to a leaner business model.
"As we further simplify the business, and focus on fewer priorities, we no longer need to be split across two main sites," the company said in a trading update this morning.
"Now is the right time to consolidate, making Salford the single main campus for the business. The vast majority of London roles will relocate to Salford in 2019."
Moreover, Talk Talk today said Fibrenation will be led by former BT executive Paul Reynolds, after the firm's own operations chief Charles Bligh was said to have "decided to pursue other opportunities".
The move confirms an end to formal discussions between Talk Talk and Prudential vehicle Infracapital on financing the move, however a longer term capital arrangement could still be agreed.
What Talk Talk said
Chief executive Tristia Harrison said:
"This has been a strong first half for Talk Talk, with continued broadband base growth and further progress as we become a simpler, more efficient business. Our fairer broadband commitment, focus on reliability and unique fixed low price plans continue to improve customer satisfaction and loyalty, resulting in our lowest ever churn in the second quarter.
"We remain on track to deliver our plan for the year, with growing consumer average revenue per user and increasing revenue leading to strong [earnings] growth."
"As we continue to radically simplify Talk Talk, we will also create a single main campus for the business in Salford. Having a single main home will reduce operational complexity and allow us to become a more efficient, focused business, in turn supporting our long-term growth."