TalkTalk issues trading update, outlines FTTP project progress

21 Jul 2016

Alternative British multi-service operator TalkTalk has issued its trading update for the three months ended 30 June 2016 (its first quarter of the 2016-17 fiscal year), saying that it had seen a strong start to the year with ’trading in line with [its] plan’.

Turnover in the quarter was roughly flat year-on-year (down by 0.4%), with on-net revenues declining by 2.0%, reflecting ‘the smaller average on-net base in the quarter’. By comparison, corporate turnover grew strongly, rising by 7.5% against the corresponding period last year, with continuing growth in data (38.5%) and carrier (40%) revenues reportedly helping to offset a 31% decline in turnover from legacy voice services. Off-net revenues, which accounted for just 2.7% of the company’s total turnover, tumbled by 14.3%.

In operational terms, TalkTalk revealed that its broadband subscriber base had fallen by 9,000 over the period under review, though it saw better results for mobile, with some 48,000 customers signing up in the quarter, while it also reported fibre net adds of 36,000. Pay-TV accesses declined by 23,000, with the operator saying this was the result of it maintaining ‘a focus on driving engagement rather than base growth’.

TalkTalk also offered an update on the progress of its ‘Ultra Fibre Optic’ branded fibre-to-the-premises (FTTP) trial in York. The build has now passed nearly 11,000 homes to date, with penetration reaching around 12% of the city less than four months after commercial launch. Nearly half of those connecting to the service are customers not previously signed up with TalkTalk. With build costs already established at below GBP500 (USD657) per home passed, the company says it is ‘increasingly confident’ of reaching a targeted penetration rate of between 30% and 40% and delivering the proof of concept required to expand beyond York.

United Kingdom, TalkTalk (incl. FibreNation)