12th May 2016 06:36
LONDON (Alliance News) - TalkTalk Telecom Group PLC on Thursday reiterated its guidance for the year ahead, as it reported a fall in pretax profit in its most recently ended financial year, due to one-off costs related to a cyber attack late last year and to its restructuring programme.
The telecommunications provider reported a pretax profit of GBP14 million for the year to end-March, down from GBP32 million the year before, as a rise in revenue to GBP1.83 billion from GBP1.80 billion was offset by exceptional items totalling GBP83 million.
Of these exceptional costs, GBP42 million related to the cyber attack on TalkTalk's business in October, as well as costs related to the company's internal restructuring programme, dubbed Making TalkTalk Simpler. It delivered GBP21 million in savings as a result of this plan during the year, and expects to make a further GBP35 million to GBP40 million in savings in the year ahead.
TalkTalk said that following the cyber attack, customer sentiment towards the company improved quickly, and it saw its lowest level of churn in the fourth quarter in its history, it said.
On a headline basis, stripping out exceptional items, the company reported earnings before interest, tax, depreciation and amortisation of GBP260 million, up from GBP245 million the year before.
It reiterated its guidance for modest revenue growth in its current financial year, with headline Ebitda of GBP320 million to GBP360 million.
TalkTalk proposed a divided of 10.58 pence, taking its total dividend to 15.87 pence, up from the 13.80 pence it paid the previous year. It expects to pay a dividend for its current year "at least in line" with this level.
"The business bounced back strongly in the final quarter following the cyber attack in October. We recorded our lowest ever churn and stabilised the broadband base, testimony to the speed with which customer sentiment towards TalkTalk has recovered, the success of our greater focus on existing customers, and the growing benefits of our simplification programme," said Chief Executive Dido Harding in a statement.
"There has never been a clearer space for a trusted value champion and our learnings from and experience since the cyber attack have helped to focus our plans for the year ahead. We see strong opportunities for growth across all our products, both for consumers and for businesses, against the backdrop of an increasingly supportive regulatory environment," Harding added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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