12th Nov 2013 09:22
LONDON (Alliance News) - Shares in TalkTalk Telecom Group PLC jumped 6.1% early Tuesday after it raised its interim dividend and increased its full-year guidance on rising revenue in the half year ended September 30.
The company said it now expects full-year revenue growth of at least 3%. It previously expected 2% growth. TalkTalk is targeting a 25% earnings before interest, tax, depreciation and amortisation (EBITDA) margin by the full year 2017.
The telecoms company proposed an interim dividend of 4.00 pence, up 16% from 3.45 pence in the previous year. The company saw revenue increase 1.8% to GBP843 million in the half, up from GBP828 million in the previous year. Increased corporate revenues offset a continued decline in voice usage, it said.
TalkTalk recorded a post tax profit of GBP7 million before exceptional items and acquisition intangibles, down from GBP68 million in the previous year. TalkTalk said pretax profit on the same basis was GBP9 million versus GBP85 million a year before.
The company said that it had spent an additional GBP86 million during the year on the growth of its television, mobile and fibre bases, including some temporary overhead costs associated with the rapid growth in its TV customers.
"Our financial performance in the first half reflects the investment we are making in growth. Sustainable revenue growth, a scale TV business, and our proven ability to simplify the business to improve our customers' experience will create a more profitable business, and we are now confident of our ability to deliver a 25% EBITDA margin by the full year 2017."
TalkTalk shares were trading 6.8% at 267.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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