TalkTalk’s earnings rise 17% as customers suffer national outage

Mark Johnson's picture
by Mark Johnson

UK telco TalkTalk has reported a 17 per cent rise in full year earnings to £237m just hours after many customers were left unable to use the company’s internet, mobile or email services.

Customers reported outages across the nation on Wednesday night, from Ayrshire to Birmingham, many reporting via outage website

TalkTalk appears to have now resolved the issue, just after reporting its results on Thursday morning.

on its Twitter feed the company said that services in its Erdington exchange had finally been restored and apologised to customers for the break in service. The company made no mention of outages elsewhere in the country.

Embedded rich media on Twitter

No TalkTalk: Service outage left customers offline for hours

The company said total headline revenue grew by 2.2 per cent to £1.54 billion and said it added 150,000 new customers over the year, down significantly from the 192,000 the previous year. TalkTalk said is now has 4.29 million customers using its services.

However, the telco said that accelerated fibre uptake saw it add 490,000 net new customers in the year, versus 348,000 last year, and a record 152k in the last quarter of the year.

"Today's results show that two years after re-setting TalkTalk, the fundamentals of the business are much stronger”, said Tristia Harrison, Chief Executive of TalkTalk.

“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.

Speeding up: TalkTalk said it is focusing on fibre

She said the business will continue with the same plan into 2019, with the main focus being on accelerating fibre, reducing costs and simplifying the business.

“Having re-structured the customer base to reduce the difference between our front and back book pricing, the business is also well placed to benefit from imminent regulatory changes related to fairer pricing”, Harrison said. 

“These trends, coupled with ongoing cost reductions including our move to one Salford campus, mean we are confident in delivering strong Headline EBITDA growth both next year and over the medium term."

TalkTalk’s shares were flat to the downside at the market open at £1.14.

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