TalkTalk's (TALK) half-year results were delayed due to “ongoing advanced negotiations with interested parties regarding its FibreNation business”, the provider of wholesale full-fibre broadband that TalkTalk launched in November 2018, and for which it had been seeking a funding partner.
However, there's now a potential spanner in the works, after the Labour Party unexpectedly revealed its ambition to roll-out “fast and free” full fibre-broadband for all, subject to the will of the electorate, of course. This would entail bringing parts of BT (BT.) into public ownership, including digital network business Openreach.
Within its delayed half-year statement, TalkTalk said that it was “continuing to progress with its planned sale of FibreNation”, but chief executive Tristia Harrison noted that Labour’s announcement had led everyone to pause and consider its implications, although one can't imagine that any such move would help to foster competition.
In any case, for the six months to September, TalkTalk netted 292,000 new fibre customers – up 52 per cent – with a record 174,000 in the second quarter, accounting for 33 per cent share of all new Openreach Fibre to the Cabinet lines. The group also swung back into the black, albeit by a narrow margin.
Numis expects adjusted EPS of 2.9p for the year to March 2020, up from 2.8p in FY2019.
| TALKTALK (TALK) | ||||
| ORD PRICE: | 105p | MARKET VALUE: | £1.21bn | |
| TOUCH: | 104.9-105.2p | 12-MONTH HIGH: | 134p | LOW: 92p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 33 | |
| NET ASSET VALUE: | 23p* | NET DEBT: | £1.04bn | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 822 | -4.0 | -0.3 | 1.0 |
| 2019 | 792 | 1.0 | 0.1 | 1.0 |
| % change | -4 | - | - | - |
| Ex-div: | 28 Nov | |||
| Payment: | 16 Dec | |||
| *Includes intangible assets of £718m or 63p a share. | ||||
