21st Nov 2018 09:10
LONDON (Alliance News) - TalkTalk Telecom Group PLC on Wednesday guided for a significantly narrowed interim loss, with customer number growth accelerating.
FTSE 250 constituent TalkTalk expects its statutory pretax loss to be GBP4 million for the six months to September, compared to GBP95 million the year before.
Operating profit on a statutory basis is guided to be GBP19 million, after a GBP62 million loss year-on-year.
TalkTalk expects total headline revenue to rise 3.9% to GBP771 million, with second quarter growth at 3.7%. On a statutory basis, revenue is guided to fall 0.6% to GBP822 million mainly due to the closure of its mobile virtual network operations.
TalkTalk is guiding for headline earnings before interest, tax, depreciation, and amortisation of GBP101 million, from GBP75 million year-on-year.
The dividend will be 1.00 pence, down from 2.50p a year before, but will meet its policy.
TalkTalk's customer base has added 104,000 customers from 46,000 a year prior, and as at September 30 it had 4.2 million customers.
The firm said average revenue per user is improving, with "encouraging" quarter-on-quarter growth.
For the full year, ending March 2019, headline Ebitda should meet expectations, and TalkTalk expects headline revenue growth as well as a fall in non-headline items.
Chief Executive Tristia Harrison commented: "This has been a strong first half for TalkTalk, with continued broadband base growth and further progress as we become a simpler, more efficient business.
"Our Fairer Broadband commitment, focus on reliability and unique Fixed Low Price Plans continue to improve customer satisfaction and loyalty, resulting in our lowest ever churn in the second quarter. We remain on track to deliver our plan for the year, with growing consumer average revenue per user and increasing revenue leading to strong Ebitda growth."
TalkTalk also Wednesday announced an acceleration of its full-fibre strategy, launching a new company called FibreNation to roll-out broadband to three million homes and businesses.
The new company will focus originally on the Yorkshire towns of Harrogate, Ripon, and Knaresborough.
TalkTalk shares were 7.0% lower on Wednesday at 113.50 pence each.
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TALK.L