(Alliance News) - TalkTalk Telecom Group PLC on Friday said it has a "structural advantage" following the GBP200 million sale of its FibreNation business, but its third-quarter revenue suffered a slight annual dip.
In the third quarter ended December 31, headline revenue was 0.8% lower year-on-year at GBP383 million, but climbed 1.6% quarter-on-quarter from GBP377 million.
Headline corporate revenue was 3.7% lower year-on-year at GBP79 million, but data revenue alone was 16% higher at GBP51 million.
The company added 148,000 new fibre customers, a 1.4% climb on the 146,000 customers it added in the third quarter the year prior.
Voice revenue decreased 15% year-on-year to GBP22 million.
Chief Executive Tristia Harrison said: "In the last quarter, we have outperformed the market on Fibre and Ethernet growth, with increasing numbers of customers in both consumer and B2B taking higher speed products. We have continued to see industry-wide Voice decline, but with the successful completion of our move from London to the North West and the resulting cost reductions our earnings before interest, taxes, depreciation and amortisation outlook remains unchanged."
The company also said its cost savings plan is on track, following the move of its headquarters to Salford in Greater Manchester from London.
Earlier in January, TalkTalk said it was selling FibreNation, as well as its two-thirds stake in Bolt Pro Tem Ltd, for a combined GBP200 million in cash to CityFibre Infrastructure Holdings Ltd.
TalkTalk launched FibreNation as part of a plan to roll-out fibre-to-the-premises to over three million UK homes and businesses.
TalkTalk said the sale is part of a plan to simplify the business. It has been "clear" the roll-out of fibre would not be fully funded from its own balance sheet, and has decided a sale is the best way forward.
The FibreNation business suffered an underlying pretax loss in the financial year to March 2019 of GBP6 million, TalkTalk noted.
Harrison on Friday said: "TalkTalk enters 2020 a far simpler business with a structural advantage to accelerate full fibre nationwide. The recently agreed sale of our FibreNation business for GBP200 million will strengthen our balance sheet while securing a long-term, competitive wholesale agreement, as well as full optionality to work with all full fibre builders."
TalkTalk shares were 1.1% higher at 114.20 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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