(Alliance News) - TalkTalk Telecom Group PLC said on Wednesday reported single-digit revenue growth in the first quarter of its current financial year and said its growth expectations for the year remain unchanged.
In the three months to June 30, total revenue rose 1.3% year-on-year to GBP387.0 million from GBP382.0 million reported a year ago.
Headline on-net revenue, comprising of its consumer, wholesale and direct business-to-business broadband customers, rose 2.6% year-on-year to GBP317.0 million from GBP309.0 million. The company said this was driven by higher average revenue per user in the quarter, up GBP24.72 from GBP24.65 during the corresponding period last year.
Demand for TalkTalk's fibre broadband product also jumped year-on-year, showing net additions of 118,000 from 67,000 in the first quarter last year.
The company reiterated that it anticipates "strong" earnings before interest, tax, depreciation and amortisation growth for the full year. Last year's figure was GBP237.0 million.
TalkTalk's cost-cutting measures also progressed, it said, the move of the company's headquarters to Salford, Greater Manchester, could lead to savings between GBP16.0 million and GBP20.0 million during the financial year ending March 31, 2020.
However, the company is yet to find an investment partner in its FibreNation scheme which aims to roll-out fast broadband to three million UK homes.
Chief Executive Tristia Harrison said: "Revenue and consumer average revenue per user rose year-on-year, underpinned by very strong demand for faster, more reliable fibre products. Up to 75% of new consumer customers are now taking fibre and we're seeing more customers than ever choose the faster of our fibre products.
"In addition, our ongoing simplification and cost reductions continue to drive improvement in profitability, and we remain on track to deliver earnings before interest, tax, depreciation and amortisation in line with expectations for the year."
In a separate announcement, the company said that John Allwood and Cath Keers will step down from their non-executive director roles with immediate effect.
Shares in TalkTalk were up 3.3% at 109.20 pence each in London on Wednesday morning.
