20th Jul 2016 06:49
LONDON (Alliance News) - TalkTalk Telecom Group PLC on Wednesday reported a small decline in revenue in the first quarter of its financial year, but said it expects things to pick up in the second half and reiterated its full-year guidance.
The telecommunications company said revenue was down a slight 0.4% in the three months ended June 30 from a year before, with on-net revenue down by 2.0% as expected due to a smaller average on-net base in the quarter.
Corporate revenue grew strongly by 7.5% year-on-year, with 39% growth in Data and 40% growth in Carrier revenue, helping offset a legacy voice decline of 31%.
Off-net revenue, which makes up 2.7% of total revenue, fell by 14% year-on-year.
TalkTalk reiterated its guidance for the full year to March 2017, with revenue expected to grow "modestly", driven by a broadly stable broadband base and continued growth in TalkTalk Business. Earnings before interest, tax, depreciation and amortisation is expected to be between GBP320 million and GBP360 million.
TalkTalk will release its first-half results on November 15, for which it predicts a decline in revenue again as a result of the smaller net base and against strong growth in on-net revenue in the comparative period. It expects to return to growth in the second half as the comparative eases.
First-half Ebitda is therefore anticipated to be approximately one-third of full-year Ebitda or between GBP107 million and GBP120 million, equating to "material" double-digit year-on-year growth.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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