TalkTalk reports profit increase for FY20, despite lower revenue

12 Jun 2020

UK-based broadband provider TalkTalk has published its preliminary results for the year ended 31 March 2020 (FY20), reporting headline revenue (excluding carrier and off-net turnover) of GBP1.52 billion (USD1.9 billion), down marginally from GBP1.54 billion in its previous fiscal year. With the company saying the decline was ‘due to the lower [subscriber] base and lower voice usage and call boost revenue across Consumer and B2B’, it said that statutory revenue declined by 3.9% year-on-year – to GBP1.57 billion – mainly due to declining carrier revenue and lower ‘non-Headline MVNO’ revenue, as it winds down the latter business.

With regards to other key financial metrics, TalkTalk reported a headline EBITDA of GBP308 million, compared to GBP237 million in FY19, while statutory operating profit stood at GBP197 million (FY19: GBP47 million). Meanwhile, the company reversed the statutory loss before taxation it recorded in FY19 of GBP5 million, recording a statutory profit before taxation of GBP131 million for FY20.

TalkTalk closed the period ended 31 March 2020 with 4.220 million on-net broadband subscribers, down from 4.289 million a year earlier. It also reported that the number of fibre-based accesses had continued to increase, rising to 2.370 million at the end of the reporting period, from 1.765 million at end-March 2019. On-net ARPU was reported as GBP24.35 per month in FY20, down marginally from GBP24.98 in the previous financial year, while on-net churn was 1.2% (unchanged y-o-y).

United Kingdom, TalkTalk