Talktalk Telecom Group PLC (LON:TALK) reaffirmed its full-year earnings target after adding 118,000 new customers to its fibre product in the first quarter.
The company said 70% of new customers took fibre in the three months to the end of June, which helped boost revenue.
Total headline revenue rose 1.3% to £387mln in the first quarter with on-net revenue up 2.6% to £317mln. Average revenue per user edged up to £24.72 from £24.65 a year ago.
Customer churn was 1.29% for the quarter, up from 1.28% last year.
"Our 2020 guidance of strong (earnings) EBITDA growth remains unchanged, underpinned by accelerated fibre penetration and our cost reduction plans," TalkTalk said.
In November, TalkTalk created a new company, called FibreNation, to build its planned 'fibre-to-the-premise' network and manage the infrastructure on behalf of all wholesale customers.
TalkTalk, which competes with BT Group PLC (LON:BT.A), Virgin Media and Sky, said on Wednesday that it continues to make good progress on finding an infrastructure investment partner for FibreNation.
Shares rose 2.9% to 108.8p in morning trading.