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Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO
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UPDATE 1-TalkTalk posts strongest broadband growth in four years

Tue, 11th Nov 2014 11:38

(Adds CEO comments, analyst reaction, shares)

By Paul Sandle

LONDON, Nov 11 (Reuters) - Britain's TalkTalk notched up the fastest growth in broadband subscribers in fouryears in its second quarter, as a net 15,000 new subscriberssigned up for deals that increasingly include mobile calls andtelevision.

TalkTalk has been pushing its TV offer, but in the lastquarter broadened its promotions to include high-speed fibrebroadband and mobile.

Chief Executive Dido Harding said she expected customergrowth to accelerate in the second half.

"We are seeing a continuing, and if anything accelerating,trend towards triple and quad play bundling," she said onTuesday, referring to the packages that throw in high-speedfibre broadband, mobile, and television.

"More than a third of customers are now taking TV and justunder 10 percent of our base is taking mobile."

Some 115,000 customers took TalkTalk's TV service in thequarter, a slowdown from the 185,000 additions in the first, butstill more than its rivals BSkyB, Virgin Media and BT put together, Harding said.

Britain's telecom and broadband operators are preparing fora shift in the market as customers take more services from asingle company, a trend that is expected to accelerate next yearwhen BT re-enters the consumer mobile market.

Mobile operator Vodafone, which provides the networkfor TalkTalk's mobile service, said on Tuesday it would launch aBritish home broadband and TV offer.

Harding, however, said TalkTalk had a clear propositionacross all services that customers could tailor with one-offpurchases, like movies.

"Our results are showing there really is space for avalue-for-money quad play provider," she said.

TalkTalk's revenue increase by 3.6 percent to 437 millionpounds ($693 million) in the quarter, while core earnings forthe first half grew 44.7 percent to 110 million pounds.

It said it expected to deliver revenue growth of at least 4percent and "strong growth" in core earnings for the full year.

Its share were trading down 3.6 percent at 285.9 pence at1043 GMT. Analysts at Citi said the group had left a lot toachieve in the second half to reach its 4 percent growth target.

(1 US dollar = 0.6309 British pound) (Editing by Karolin Schaps and Clara Ferreira Marques)

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