TalkTalk confirms lower revenues in April-June trading update

19 Jul 2017

A trading update issued by UK-based multi-service provider TalkTalk has seen the company claim a ‘strong start’ to its current fiscal year (ending 31 March 2018), despite a dip in revenues. First-quarter group revenue for the three months to 30 June 2017 (excluding turnover from its ‘Carrier’ services), declined by 3.2% year-on-year, it said, with the company noting that, while it had seen growth in revenues from its corporate and wholesale broadband services, these were offset by a decline in turnover from its consumer services. Nonetheless, having attributed the lower consumer revenues to a ‘smaller average on-net base and the dilutive effect of re-contracting activity’, TalkTalk said it expects fibre-based services and other products, such as pay-TV, to help drive revenue growth for the full-year period.

With regards to customer take-up, TalkTalk said it had recorded growth in the on-net base in its fiscal 1Q18, with this rising by 20,000 in the quarter, compared to a decline of 9,000 in the corresponding period a year earlier. Further, it said it had also reduced on-net churn, which fell to 1.2% in the period under review (1Q17: 1.4%).

United Kingdom, TalkTalk (incl. FibreNation)