TalkTalk Telecom Group PLC Trading Statement (4379L)
19 July 2017 - 4:00PM
UK Regulatory
TIDMTALK
RNS Number : 4379L
TalkTalk Telecom Group PLC
19 July 2017
19 July 2017
TalkTalk Telecom Group PLC
Trading update for the 3 months to 30 June 2017 (Q1 FY18)
Strong start to the year with continued momentum in broadband
base
-- Net adds +20k with on-net base growth in both Consumer
and Wholesale
-- Continued reduction in on-net churn to 1.2% (Q4 FY17:
1.4%)
-- 1.3m customers now on new fixed price plans
-- Continued strong growth in B2B including Ethernet connections
-- Group revenue (ex-Carrier) -3.2%
-- Reiterating FY guidance (EBITDA GBP270m-GBP300m)
Q1 trading in line with expectations
We delivered another quarter of good growth in the on-net base
(+20k vs a 9k decline in Q1 FY17) with growth in both our Consumer
and Wholesale bases. We also reduced on-net churn, which fell to
1.2% during the quarter (Q1 FY17: 1.4%)
In Consumer we continued to see strong demand for our Fixed Low
Price Plans ("FLPP"), with both re-contracting and new acquisition
activity driving the total number of customers on FLPP to 1.3m by
the end of the quarter.
This growing in-contract base is continuing to contribute to
improvements in churn, with early life churn from customers signing
up to FLPP significantly lower than that from new customers a year
ago. Take-up of the 24 month plans has also continued to be strong,
with over a third of FLPP customers choosing the longer term price
certainty that these plans offer. Similarly we have continued to
see strong demand for fibre with nearly 40% penetration of the FLPP
base. Triple play and quad play penetration remained stable during
the quarter, with TV net adds continuing to improve, both amongst
re-contracting and new customers.
Once again, we saw strong growth in the TalkTalk Business
Ethernet base, with 2,000 new lines added, taking the total
installed base of data connections to 44k.
Group revenues (excluding Carrier) declined by 3.2% year-on-year
during the quarter. Strong growth in Corporate and Wholesale
broadband revenues was offset by a decline in Consumer revenues
resulting from the smaller average on-net base and the dilutive
effect of re-contracting activity. These effects are expected to
moderate as the base grows, and we drive fibre take up and other
products such as TV. As a result we continue to expect full year
revenues to grow.
Outlook
Our FY18 guidance remains unchanged, with base and revenues
expected to grow year on year, improving free cash flow, and EBITDA
of GBP270m-GBP300m. H1 results are expected to be released on
15(th) November 2017.
Conference call: there will be a conference call for analysts
and investors at 8.30 a.m.
Live Dial-in: +44 (0) 20 3003 2666
Webcast: http://cache.merchantcantos.com/webcast/webcaster/4000/7464/16532/91493/Lobby/default.htm
Replay (available +44 (0) 20 8196 1998 PIN code: 2671630#
for 7 days):
Enquiries
+44 (0) 20 3417
Investor Relations: Mal Patel 1037
+44 (0) 75 8470
Media: Isobel Bradshaw 8351
This information is provided by RNS
The company news service from the London Stock Exchange
END
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