Strong broadband growth. Significant profit and cash-flow generation.
Integration on track. Positive outlook.
(1) Unaudited; includes 9 months Tiscali results; excludes exceptional charges and Carphone Warehouse plc costs.
(2) Excludes former Tiscali customer base and AOL customer base.
Charles Dunstone, commented:
"Last year was transformational for TalkTalk. In July we completed the acquisition of Tiscali, to create the largest provider of unbundled broadband and voice services in the UK, with a 23% share of the broadband market. Just before the end of the year we completed our demerger from Carphone Warehouse plc, to become a separately listed, standalone telecoms company.
"Our businesses performed well throughout the year, with the TalkTalk brand ending the year as the fastest growing ISP base in the UK. Our straight-forward, value-for-money customer propositions, and the benefits of our investment in the UK's most extensive Next Generation Network, enabled us to report strong revenue, profit and cash-flow growth.
"This year we will focus on two main priorities for the business: maintaining our momentum in the broadband market through continuing to grow TalkTalk's broadband base and ARPU; and completing our "one company" integration programme, migrating customers onto our expanded network footprint and onto core customer management and billing systems. This continued focus on growth and integration will deliver sustainable operating cash-flow growth, and allows us to set out specific targets for our dividend growth going forward."
Key guidance for 2010-11
TalkTalk Telecom Group PLC is today giving a strategy update and financial guidance for the year to March 2011. The Group is also providing indicative financial information for the year to March 2010, since following the recent demerger there will be no preliminary results announcement in respect of this year. A full set of audited results will be posted on the Group's website in July.