TalkTalk steadied the ship in the three months to the end of March, with flat growth and reduced churn of just 1.3 percent – a record low for the company.

The rally ensured it hit targets for the year, with sales up 2.4 percent to £1.8 billion and EBITDA climbing 6.1 percent to £260 million.

However, profit more than halved to £14 million as a consequence of the cyber attack on its business in October, which shaved £42 million in one-off costs from its balance sheet as it sought to respond to customers and halt churn.

The October cyber attack also impacted TalkTalk’s subscriber base, with 95,000 customers quitting and sales slowing dramatically in the aftermath as it struggled to reassert its buoyancy.

Flat net additions in the last quarter, allied to natural attrition of 16,000 customers in the previous three, plus the disconnection of 72,000 non-paying customers following a change in credit terms, meant TalkTalk’s base finished just shy of four million, down from 4.2 million at the end of its last financial year.

TalkTalk added 225,000 net new fibre customers during the year, taking its total to 704,000, while 235,000 mobile customers joined, bringing its total base to 699,000.

The company put its performance since Christmas down to better customer retention and the effectiveness of its transformation strategy.

It said its simplification programme has delivered £21 million in savings already, and will achieve a further £35 million in the next 12 months.

TalkTalk business saw revenues for the year up five percent as demand for data services offset a more than 16 percent decline in voice revenues.

[Read more: TalkTalk unveils subscription-free film and TV service]

TalkTalk CEO Dido Harding (pictured) said: “There has never been a clearer space for a trusted value champion and our learnings 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.”

TalkTalk restated its guidance for this financial year of modest revenue growth and EBITDA at £320-£360 million.

Mapping the road ahead, the company said it expects to start to migrate its mobile customers from the Vodafone to the O2 network, in line with its new MVNO arrangement with the latter, in the autumn, with customers able to take advantage of its better commercial terms 12 months from now.

The O2 arrangement will also see TalkTalk take more control of customers’ mobile experience, allowing for real-time traffic management and better-integrated multi-play offers.

It will also allow TalkTalk to roll out femto cells across its fixed line base to create better mobile coverage indoors.

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms