TalkTalk's customer base grows despite revenue fall

TalkTalk Telecom Group on Thursday said its customer base returned to growth for the first time in three years during the third quarter despite a fall in total revenues.

TalkTalk Telecom Group on Thursday said its customer base returned to growth for the first time in three years during the third quarter despite a fall in total revenues.

The FTSE 250 firm, which provides pay television, telecommunications and internet access services, posted £415m in total revenues, down from £422m the previous year, driven by an ongoing fall in off-net trading.

However, on-net revenues were up 5.8% year-on-year to £292m and corporate revenues grew 1.3% to £80m. The group's On-net average revenue per user climbed 1.7% to 325.47.

The company saw an upsurge in clients including 80,000 TV subscribers along with an additional 35,000 new mobile customers and 22,000 fibre consumers. The total broadband customer base also increased by 10,000 during the quarter.

"We have returned our total customer base to growth for the first time in three years - an important milestone on our journey to become a growing and more profitable business," Chief Executive Dido Harding said.

"We successfully launched TV and mobile handsets this summer and the growth in take-up by both existing and new customers underlines the scale of opportunity we see in these additional products.

"With good trading momentum across the business, we have entered the final quarter strongly focused on execution. We are confident of delivering full-year results in line with our guidance, and are making real progress towards our medium term targets of 2% revenue growth and 25% [earnings before interest, tax, depreciation and amortisation] margin."

Shares fell 2.45% to 1,077.50p at 08:30 Tuesday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021