TalkTalk has managed to steady the after-effects of last year's calamitous cyber attacks, with its Q1 results showing stabilising churn amid flat sales.
The results showed TalkTalk’s total revenue slipped marginally, by 0.4 percent, in the quarter. The telco does not give specific sales figures during its quarterly figures.
On-net revenue, which comes from customers who access its network, fell two percent as a consequence of its reduced customer base, and off-net revenue, comprising just 2.7 percent of its total takings, declined by 14.3 percent.
In terms of customers numbers, its broadband base slipped by 9,000 in the period, and its TV base by a further 23,000. Its broadband base shows signs of stabilising after last year's cyber attacks caused an exodus in customers.
By comparison, net additions to its mobile and fibre bases were good, at 48,000 and 36,000, respectively. TalkTalk said its focus in the period had been to drive engagement among existing customers, rather than recruit new customers.
On-net churn was 1.36 percent, down on the first quarter of 2015, and stable compared with its previous quarter.
CEO Dido Harding highlighted TalkTalk’s roll-out of Ultra Fibre Optic (UFO) cable to premises in York, with service available to 11,000 homes within 14 weeks of the project’s start. Around 12 percent have so far taken the service, with nearly half churning from rival providers.
TalkTalk put the build cost at around £500 per home, and expects to connect 30-40 percent of properties within coverage area, expanding the trial in due course.
“We are excited about the potential this demonstrates to build a scale network across the country in the future,” said Harding.
The company reiterated its guidance for the financial year, expecting to achieve modest revenue growth and EBITDA of £320m-£360m by the year’s end.
Harding added: “We are very pleased with how the year has begun. Revenue growth was level year on year despite a smaller customer base and churn was down year on year as we drove growth in mobile and fibre, and delivered real improvements in our customers’ experience."
Multiplay (RGU) penetration, its measure of the average number of services taken by each user, rose 6.8 percent to 1.72, driven by mobile and fibre.
Its new MVNO agreement with Telefónica remains on track, as it looks to complete the billing and CRM migration of current mobile customers from the Vodafione network in the second half of the year, and also extend its mobile proposition to business customers.