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TalkTalk bets on new products to stem user losses

The cut-price telecoms provider lost TV and broadband customers, but its profitability improved
TalkTalk bets on new products to stem user losses

A little over a year after a major cyber attack rocked TalkTalk Telecom (TALK), the 'quad-play' provider of television, broadband, mobile and landline services is still feeling the aftershocks. Its core customer base shrank by 29,000 users in the reported period, pushing core revenues down 4 per cent. But management's simplification plan generated £17m in cost savings; coupled with lower marketing and subscriber acquisition costs, that drove adjusted cash profits up 44 per cent to £130m.

IC TIP: Hold at 192p

Mobile and fibre users increased by 13 per cent and 11 per cent, respectively, but the larger broadband and TV user bases shrank slightly. Corporate turnover rose 11 per cent to £208m, as strong growth in carrier and data sales offset lower voice revenues. And churn - the percentage of subscribers who quit the group's services - fell slightly to 1.4 per cent.

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