Dido Harding, chief executive of Talktalk Telecom Group PLC (LON:TALK) is to step down in May after seven years in charge, with founder Charles Dunstone becoming the broadband group’s executive chairman and, as a result, quitting his post as non-executive chairman of Dixons Carphone PLC (LON:DC.).
The surprise change at the top came as the FTSE 250-listed firm also reported a 5.4% drop in third-quarter net revenues to £435mln, down from £459mln a year earlier.
Harding, a life peer and a a vocal critic of industry leader BT Group PLC (LON:BT.) said that after seven years, it was time to "start handing over the reins at TalkTalk and focus more on my activities in public service".
Dunstone will be replaced at Dixons Carphone by Ian Livingston, the ennobled former chief executive of telecommunications giant BT and deputy chairman at the merged, FTSE 100-listed electricals and mobiles phones retailer since 2015.
At Talktalk,Tristia Harrison, currently managing director of TalkTalk Consumer will succeed Harding as CEO and Charles Bligh, currently managing director of TalkTalk Business will become chief operating officer.
Dunstone said: “I'm excited at the prospect of spending more time on TalkTalk, beginning with delivering another successful performance this year; and I am delighted to announce the promotion of Tristia and Charles to help me lead the business so that we continue to deliver successfully for our customers and our shareholders."
Shares diverge ...
Talk Talk shares topped the FTSE 250 leader board in early trading, jumping over 6% higher, up 10.0p to 166.5p.
Independent retail analyst Nick Bubb said: "Well, 'once a mobile phone man always a mobile phone man', as they say, so it’s perhaps no great surprise that Charles Dunstone wants to return to his roots by getting more involved with TalkTalk, but investors in Dixons Carphone will be wondering what his move says about the prospects for the business 3 years on from the merger…"
Dixons Carphone was the biggest FTSE 100 faller, with its shares down down almost 1% or 2.7p at 313.2p.
But analysts at Liberum said: "While today’s announcement is unexpected, we do not see anything untoward."
Re-pricing legacy …
In a separate trading update today, TalkTalk – which was the victim of a major cyber hacking attack in 2015 - said a high level of re-contracting and re-pricing of its legacy tariffs had an impact on its revenue in the third-quarter.
But the firm said an additional 81,000 customers have re-contracted during the first 4 weeks of January, of which over 75% have re-contracted on its newly introduced 24 month plan.
The group added that it expects “to deliver positive on-net net adds and lower churn in Q4, with a stable and higher quality Retail base driving revenue growth during FY18.”
TalkTalk maintained its guidance for full-year underlying earnings (EBITDA) for 2017 and reiterated that its final dividend will be flat year-on-year at 10.58p.
-- Adds share prices, broker comment --