TalkTalk 3Q revenues rise despite broadband subscriber decline

8 Feb 2011

British alternative broadband provider TalkTalk has revealed a 7% year-on-year increase in turnover in the three months ended 31 December 2010, despite reporting a fall in broadband customer numbers during the quarter. In the last three months of 2010 TalkTalk generated broadband revenues of GBP316 million (USD447 million), up from GBP294 million in the corresponding period last year, while total revenues in the quarter was GBP444 million, down marginally against GBP446 million in the same period in 2009, with a ‘continuing decline in non-broadband revenue’.

The operator’s broadband subscriber base stood at 4.224 million at end-December 2010, down by 25,000 in the quarter, which TalkTalk attributed to continuing churn from former Tiscali customers. As noted in TeleGeography’s GlobalComms Database, in May 2009 TalkTalk revealed it had agreed to pay GBP236 million for the British broadband operations of Italy’s Tiscali, with the purchase completed in July 2009. In January 2010 TalkTalk announced that it had completed the migration of all Tiscali customers to its own ISP, also confirming that the Tiscali brand would cease to be used in the UK as of that date. Broadband average revenue per user (ARPU) for the operator, however, has continued to climb, and stood at GBP24.9 in 3Q2010/11, up from GBP23.6 a year earlier; the increase, the company said, ‘partly reflected the impact of line rental and voice call tariff increases at the start of the quarter’.

Commenting on the results, Dido Harding, TalkTalk’s chief executive officer, said: ‘We have made a good start implementing the new strategy we announced in November last year, focusing on simplifying our business, improving our operating margins, and delivering value for money products and services for our existing customers.’

United Kingdom, TalkTalk