A tougher UK broadband market sent shares in telecoms firm TalkTalk (LON:TALK) almost 7% lower in early deals as it unveiled first quarter numbers, which, otherwise, showed good progress.
The firm revealed that for the three months to June 30, the "broadband market was softer than we have seen in recent quarters" as competition from rival providers gets tougher.
Revenues in the three months grew by 3.5% year-on-year with strong growth in on-net and corporate offsetting a continuing decline in off-net revenues, the firm said.
The launch of an unlimited SIM at the beginning of the quarter has delivered strong growth in the mobile phone business with a 15% share of the new SIM only market in the quarter, compared to 11% in the fourth quarter of 2015.
"We have made a good start to FY16. We are on track to deliver full year revenue growth of 5% and strong growth in EBITDA and Free Cash flow as we make progress towards our FY17 targets," TalkTalk told the trading statement.
However, the market was not too impressed and shares fell 6.76% to 364.10p.