23rd May 2019 08:54
LONDON (Alliance News) - TalkTalk Telecom Group PLC on Thursday expressed confidence in the year ahead as it reported a significantly narrowed annual loss.
For the financial year that ended March 31, the telecommunications company posted a pretax loss of GBP5.0 million compared to a GBP100 million loss in financial 2018.
This was achieved despite revenue lowering 1.3% to GBP1.63 billion from GBP1.65 billion. Operating expenses reduced to GBP659 million from GBP731 million, and cost of sales was down 5.2% to GBP770 million, both helping the company's profitability.
"Today's results show that two years after re-setting TalkTalk, the fundamentals of the business are much stronger. We have grown our customer base in a disciplined way, accelerated Fibre take-up, and reduced costs," Chief Executive Officer Tristia Harrison said.
The FTSE 250 listed firm kept its final dividend unchanged at 1.50 pence per share, resulting in a lower total divided of 2.50p from 4.0p a year ago.
Looking ahead, the telecommunications provider said it remains confident in earnings growth in the recently commenced financial year.
TalkTalk said its outlook is underpinned by accelerated fibre growth, lower fibre wholesale costs due to commercial discounts, and "significant cost savings" from moving the firm's headquarters to Salford.
Harrison added: "Looking forward the business will continue with the same plan, focused on accelerating Fibre, reducing costs and simplifying the business. Having re-structured the customer base to reduce the difference between our front and back book pricing, the business is also well placed to benefit from imminent regulatory changes related to fairer pricing.
"These trends, coupled with ongoing cost reductions including our move to one Salford campus, mean we are confident in delivering strong headline earnings growth both next year and over the medium term."
TalkTalk shares were trading 0.9% lower at 114.10 pence each on Thursday morning.
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TALK.L