Accident-prone internet and phone services provider Talktalk Telecom Group PLC (LON:TALK) remains confident of achieving earnings growth this year in line with market expectations.
The group, still trying to shake off a reputation for poor customer service and lax cybersecurity, said its optimistic outlook is underpinned by an acceleration of its roll-out of “fibre to the premises” and a much-reduced cost base.
READ TalkTalk shares drop as it warns customer acquisition costs will dent profits by up to £15mln
Results for the year to the end of March showed headline revenue rose 2.2% to £1.54bn from £1.51bn the previous year, although the statutory revenue figure dipped 1.3% to £1.63bn from £1.65bn.
Headline underlying earnings (EBITDA) jumped to £237mln from £203mln the previous year.
Depreciation and amortisation took a £203mln (2018: £143mln) chunk out of earnings, contributing to a net loss before tax of £5mln, although this was much improved from the previous year's loss of £100mln.
The final dividend was held at 1.5p, giving a total pay-out for the year of 2.5p, down from 4p the previous year.
TalkTalk failed to tell 4,500 customers their bank details were stolen in 2015 https://t.co/KzKxOUEBXj pic.twitter.com/wBmcJEDS90
— Mirror Tech (@MirrorTech) May 22, 2019
"Today's results show that two years after re-setting TalkTalk, the fundamentals of the business are much stronger. We have grown our customer base in a disciplined way, accelerated fibre take-up, and reduced costs. This is translating to revenue growth and a c.17% increase in headline EBITDA,” said Tristia Harrison, the chief executive of TalkTalk.
“Looking forward the business will continue with the same plan, focused on accelerating fibre, reducing costs and simplifying the business,” she added.
Shares in TalkTalk were up 0.1% at 115.2p in early deals.