22nd Jul 2015 06:58
LONDON (Alliance News) - TalkTalk Telecom Group PLC on Wednesday said it is on track to meet its previous guidance of revenue growth of 5% for its current financial year as it saw revenue rise in its first quarter in what it called a "good start" to the year.
The telecommunications company said revenue in the quarter to end-June rose 3.5%, as 6.5% growth in on-net revenue - meaning customers connected directly using TalkTalk's own equipment - and corporate revenue offset the continuing decline in off-net revenue - meaning customers whose connection is provided via BT Group PLC's wholesale business.
Revenue generating units per customer from TalkTalk's on-net customer base grew 15%, the company said, to 1.6 from 1.4 a year ago.
Growth in TalkTalk's mobile segment has been boosted by the launch of its unlimited SIM product at the beginning of the quarter. However, the broadband market was softer than the company has seen in recent quarters as a result of higher promotional activity in the sector.
The migration of Tesco PLC's broadband customers onto TalkTalk's network has begun well, and it said it expects to complete this migration during the remainder of the year.
TalkTalk expects to announce its first-half results on November 10. It expects earnings before interest, tax, depreciation and amortisation to be weighted towards its second half.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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