TalkTalk revenues increase in final quarter of 2013 on the back of larger customer base

5 Feb 2014

Alternative British broadband provider TalkTalk has published its financial results for the three months ended 31 December 2013, with the company registering a more than 5% increase in revenues for the period. In the quarter under review, TalkTalk generated a total turnover of GBP436 million (USD705 million), up from GBP415 million in the year ago period. Such growth, the company’s chief executive Dido Harding said, showed ‘the powerful effect of combining a modestly growing customer base, disciplined pricing and promotional activity, and strong new product growth particularly in TV’. On-net revenues meanwhile increased by 9.6% year-on-year, driven by base growth and ARPU progress which the company said resulted from successful pricing activity and new product penetration. Corporate revenues also saw a notable boost, climbing by 8.8% against 3Q 2013-14 to GBP87 million.

Meanwhile, on the back of a May 2012 deal under which the Post Office selected TalkTalk as its wholesale broadband supplier, the latter saw a notable jump in its overall subscriber base as a result of these customers being switched to its network in the last quarter of 2013. With TalkTalk reporting 110,000 total broadband net adds in the three months ended 31 December, it highlighted the fact that the figure excluding Post Office migration was just 7,000. Excluding the Post Office base, the telco said its fully unbundled broadband base had increased by 49,000, with 84% of customers now connected to TalkTalk equipment, up from 80% at end-December 2013. Also of note was the ‘continued strong growth in take-up of TV’, with 175,000 net new customers added to TalkTalk’s pay-TV subscriber base, bringing the total to 732,000.

Commenting on the results, and looking ahead, Ms Harding noted: ‘In TalkTalk Business, we saw a strong acceleration in data products growth and successfully migrated Post Office customers onto our network. As a result this has been another quarter of successfully delivering against our objectives; we are confident that we are building a business with strong and sustainable revenue momentum and growing profitability. We are on track to deliver our FY14 guidance and our medium term targets of 4% revenue CAGR (FY14-17) and 25% EBITDA margin by FY17.’

United Kingdom, TalkTalk