Headline revenues slip at TalkTalk as it focuses on fibre

(Sharecast News) - TalkTalk reported a fall in headline revenue, ex-carrier and off-net, in its third quarter trading update on Friday, to £383m from £386m year-on-year, while its headline on-net revenue slipped to £310m from £316m.
The FTSE 250 telecoms provider said its headline off-net revenue was in line with the third quarter of the 2019 financial year at £3m, while its headline corporate revenue fell to £79m from £82m.

It said fibre net adds during the period totalled 148,000, up from 146,000 a year earlier, while on-net average revenue per user was £24.43, down slightly from £24.70.

On-net churn was 1.2%, compared to 1.16% at the same time last year, while ethernet net adds rose to 1,700 from 1,100.

"TalkTalk enters 2020 a far simpler business with a structural advantage to accelerate full fibre nationwide," said chief executive officer Tristia Harrison.

"The recently agreed sale of our FibreNation business for £200m 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.

"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."

Harrison said TalkTalk had continued to see industry-wide voice decline, but with the successful completion of its move from London to the North West and the resulting cost reductions, she added that the company's EBITDA outlook remained unchanged.

"As we look forward, we will reap the benefits of this simplification, further cost reductions, a strengthened balance sheet and cash generation.

"Plus, clear optionality to realise our scale and accelerate customer migration to full fibre products over the long term."

At 0851 GMT, shares in TalkTalk Telecom Group were up 1.06% at 114.2p.