Break-up proving good for TalkTalk
May 12 2010 Huddersfield Daily Examiner
BROADBAND firm TalkTalk hailed a “transformational” year for the firm – with accelerating customer growth and a 27% rise in profits.
The UK’s second biggest broadband firm with 4.2m customers bought Tiscali’s UK business last year and made its stock market debut in March after a split from Carphone Warehouse.
In its first update since the demerger, TalkTalk added 42,000 new broadband customers in the three months to March 31 – up from 36,000 the previous quarter.
A full set of results will be published in July, but indicative figures showed underlying earnings were up by 27% to £230m for the year to March 31.
Charles Dunstone, who set up Carphone Warehouse in 1989, retains a 33% stake in both TalkTalk and Carphone and is chairman of both companies.
He said TalkTalk had “performed well” throughout the year with the two priorities being “maintaining the momentum” and pressing on with the integration of Tiscali, which is set to generate cost savings of up to £50m by the end of next year.
The group aims to add up to 180,000 new broadband customers over the year, with revenue growth of between 6% and 8%. It also hopes to increase average revenues per user to £25 a month by launching new services such as mobile and TV to its existing customers.
Carphone Warehouse is also prospering as a separate firms – recently raising profits guidance for the third time in six months.