Chairman’s statement

We made solid progress during FY17 in transforming our systems and processes and improving our network, to deliver a better experience for our customers and reduce churn from last year’s elevated levels. This allowed us to refresh the TalkTalk brand and launch our Fixed Low Price Plans (FLPP) that, in a move unique to the UK market, we also made available to existing customers. Recontracting activity and demand from new customers exceeded our expectations and we ended the year with a higher percentage of the base in contract. Therefore, while across the full year the On-net base and On-net revenue contracted, the combined success of these measures is evident in the return to net adds growth that we delivered in our Retail base during the last quarter of the year, together with much improved churn. TTB had another successful year, with strong growth in Data revenues from 8,000 connections during the year. Group revenues declined year on year, driven by the contraction of the On-net base, but, with lower SAC and Marketing expenditure and operating costs, Headline EBITDA⁽¹⁾ grew by 17% year on year to £304m.

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