11th Jun 2020 08:47
(Alliance News) - TalkTalk Telecom Group PLC on Thursday said it expects its earnings to remain stable going forward after profit decreased in its most recently ended financial year.
The pay television, telecommunications, internet access, and mobile network services provider reported pretax profit of GBP131 million for the year to the end of March, down 105 from GBP146 million a year prior, as revenue declined 3.7% to GBP1.57 billion from GBP1.63 billion.
London-headquartered TalkTalk explained that its revenue fell mainly due to declining Carrier revenue and lower non-headline mobile virtual network operator revenue, as the company winds down this business.
TalkTalk declared a final payout of 1.50 pence a share, taking the total payout to 2.50p, unchanged year-on-year.
"Access to reliable, affordable connectivity has never been so important - and low prices matter now more than ever before. As the only scale, value provider, TalkTalk continues to be well positioned to meet this demand," said Chief Executive Tristia Harrison.
"Looking ahead to financial 2021, we remain in a robust operational and financial position, with levers in our control to manage costs further, whilst having not required any furlough or government assistance," she added.
TalkTalk said it will not be providing formal guidance due to Covid-19 uncertainties, but said, based on current trends it would expect to deliver stable headline earnings before interest, tax, depreciation and amortization year-on-year, after assuming a GBP15 million Covid-19 impact. The company said it also expects strong cash conversion and will therefore be maintaining the dividend at 2.5p.
FTSE 250-listed TalkTalk shares were trading 3.3% lower in London on Thursday at 96.00p each.
By Evelina Grecenko; [email protected]
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