Preliminary results for the 12 months to 31 March 2012 (FY12)
FY 2012 financial headlines
(1) Excludes exceptional charges and tax credit and amortisation of acquisition intangibles – see Note 3.
(2) Excludes £9m profit on disposal of freehold property assets.
(3) Operating free cash flow is stated before exceptional costs
|Q4 operating metrics|
|Net adds||-13,000 (Q3: -43,000)||Total revenue||£421m (Q3: £422m)|
|Fully unbundled net adds||100k (Q3: 63k)||Broadband revenue||£313m (Q3: £312m)|
|On-net customers||92% (Q3: 90%)||Broadband ARPU||£25.6 (Q3: £25.3m)|
|Plus customers||1m (Q3: 883,000)|
Dido Harding, Chief Executive of TalkTalk commented:
We have delivered our 20% EBITDA margin target significantly ahead of schedule. Our focus on improving customer service has driven a real improvement in customer numbers and we are on track to deliver total customer growth in the current quarter. Our strategy has delivered a materially more profitable and stable customer base and a leaner, more efficient cost structure, giving us a strong platform from which to invest in growth opportunities such as YouView.
We are underscoring our confidence in the long term prospects for the business by raising our medium term EBITDA margin target to 25% and a commitment to grow the FY13 and FY14 dividend by at least 15% per annum, while at the same time investing in growth.
We will achieve our growth and margin targets through continued expansion of our network, further operating efficiencies, adding more services to become a genuine quad play, growing scale in our business to business operations and increasing our sales of superfast broadband. We believe the successful implementation of this strategy, supported by our financial strength, will deliver significant customer and shareholder value.
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