TalkTalk’s second year as a stand alone company has once again been one of intense activity that has delivered an excellent financial performance with strong progress in the Group’s profitability driving Headline earnings per share growth of 33% and dividend per share growth of 61%.
Following the completion of the complex integration of Tiscali in FY2011 TalkTalk made significant progress in FY2012 in simplifying the business and reducing costs to become more efficient. This has helped the Group’s profitability and created a strong platform from which to invest in future growth opportunities. Equally importantly, simplifying how we operate and making our processes more efficient has given our customers an even better experience.
TalkTalk Business has seen a year of good progress against the backdrop of an ongoing decline in legacy voice revenues and substantial increase in orders for our Ethernet data services.
At the heart of TalkTalk is our commitment to be the UK’s best value for money provider of broadband, voice and television services. Broadband is now an essential service, and we will be absolutely true to our heritage of giving customers consistently the best value for money products in the market.
This includes being competitively priced in fibre, which we now offer our customers at up to speeds of 80Mbps. Later this year we will be transforming our customers’ television viewing experience with the launch of YouView from TalkTalk, allowing them to access value for money TV packages that are just not available in the market now.
At the end of FY2011, we put in place a policy to distribute 50% of our Headline earnings per share every year in the form of regular dividends. I am pleased to report therefore that for FY2012 the Board has declared a final dividend of 6.4p that, in addition to our interim dividend of 2.6p, gives a total payout for the year of 9.0p.
It has been another year of significant change and challenge for our employees, the Board and I would like to thank them for their efforts and continuing commitment to TalkTalk and our customers.