TalkTalk Telecom raises dividend on positive outlook

TalkTalk Telecom Group unveiled a 17 per cent fall in annual post-tax profit to 132m pounds following a drop in revenue.

Total revenue came to £1.67bn in the year to March 31st, a 1.0% fall from the previous year's £1.68bn.

However, Chief Executive, Dido Harding, insisted it was a "momentous year" for the company as it added 150,000 new TV subscribers and posted an 11% rise in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to £352m.

"This has been a momentous year for TalkTalk, which is now a fundamentally better business than it was three years ago," he said.

"In the year we have returned our customer base to growth, successfully launched TV and mobile handsets, grown TalkTalk business, and returned to year-on-year revenue growth in the final quarter."

In the last quarter, revenue recovered to 1.4% year-on-year growth of £427m boosted by an increase in TV subscribers and mobile customers.

At the end of the year the company had reduced its net debt by £41m to £393m.

TalkTalk recommended a 15% rise in its full-year dividend to 10.4p, saying it was confident of achieving increased revenues, higher gross margins and lower overheads in 2014.

"We have the UK's fastest growing new TV business and our customers clearly appreciate its comprehensive content and value for money pricing," Harding added.

"We will continue to invest in growth and remain confident that having more customers who buy more products and who stay with us longer, puts us firmly on track to achieve our medium term financial targets."

Shares rose 8.59% to 246.50p at 11:47 Thursday.

RD