(Alliance News) - TalkTalk Telecom Group PLC said Friday it swung to first-half profit and affirmed its guidance for the full-year.
In the six months to September 30, revenue fell 3.6% to GBP792.0 million from GBP822.0 million last year, on declining carrier revenues and the firm exiting mobile virtual network operations, a measure it announced in May 2017.
The company swung to a pretax profit of GBP1.0 million from a GBP4.0 million loss last year.
Headline earnings before interest, taxation, depreciation and amortisation jumped 39% to GBP140.0 million from GBP115.0 million.
TalkTalk said: "Headline Ebitda outlook for the year remains unchanged, with increased Fibre penetration and headquarter move efficiencies driving a materially lower cost base."
TalkTalk moved its headquarters to Salford, Greater Manchester, from London, a moved which delivered GBP7 million in first half cost savings. Looking to the second half, the FTSE 250 firm expects a further GBP10 million in savings from the move.
TalkTalk recommended an interim dividend of 1.00 pence, flat year-on-year.
Chief Executive Tristia Harrison said: "We're pleased that our clear strategy to accelerate customer growth in Fibre broadband while also reducing costs has led to a significant increase in profitability in the first half.
"We now have over two million customers taking a Fibre product, adding nearly 300,000 customers in the half."
TalkTalk shares were down 1.1% in London at 107.40 pence each on Friday morning.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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