TalkTalk on track for nearly 1MN TV subs after strong six months
Joseph O'Halloran | 12-11-2013
Announcing its interim results for the six months to 30 September 2013, TalkTalk has revealed strong growth for its IPTV business line, despite falling profits.
The leading UK ISP and YouView founder member reported that for the half-year it posted total revenue of £843 million, up 1.8% year-on-year, with on-net revenue up 6.8% to £612 million. Yet despite the rising revenues, headline EBITDA slumped to £76 million from £147 million a year earlier. The company said this was “in line with expectations”, reflecting an additional £86 million investment in growth.
In terms of LOB performance, TV was a strong performer with the launch of the Essentials TV package leading to 167,000 TV net additions in the second quarter alone, driving a base standing at 557,000. This growth led the company to expect a year-end base of nearly a million.
“We are delighted with the progress we have made in the first half. We have the fastest growing TV business in the UK and we now expect to have nearly one million TV customers by the end of FY14,” commented Dido Harding, TalkTalk chief executive. “Our financial performance in the first half reflects the investment we are making in growth. Sustainable revenue growth, a scale TV business and our proven ability to simplify the business to improve our customers’ experience will create a more profitable business.”