• Strong acceleration in year-on-year revenue growth to +5.1%
  • 110,000 net adds including 103,000 Post Office customers
  • 175,000 TV customers added in quarter, taking base to 732,000
  • On-net churn reduced as expected, from Q2 peak to 1.6% (Q2 FY14: 1.7%)
  • Reiterating FY14 guidance and confident of achieving medium term financial targets

Financial Highlights

  • Total revenue up 5.1% to £436m (Q3 FY13: £415m)
  • On-net revenue up by 9.6% year-on-year to £320m (Q3 FY13: £292m)
  • Corporate revenue up by 8.8% to £87m (Q3 FY13: £80m)
  • On-net ARPU up by 5.2% year-on-year to £26.79 (Q3 FY13: £25.47)

Operating Highlights

  • 107,000 on-net net adds (Q2 FY14: +34,000), including 84,000 Post Office customers
  • 197,000 TVOD pay per view movies taken by TV customers (Q2: 123,000)
  • 24,000 new mobile customers added, taking base to 260,000
  • 35,000 new fibre customers added, taking base to 177,000
  • 49% growth year-on-year in data products revenues in TalkTalk Business

Dido Harding, Chief Executive of TalkTalk commented:

We are delighted with the material step up in our revenue growth during the quarter, which shows the powerful effect of combining a modestly growing customer base, disciplined pricing and promotional activity, and strong new product growth particularly in TV. In TalkTalk Business, we saw a strong acceleration in data products growth and successfully migrated Post Office customers onto our network. As a result this has been another quarter of successfully delivering against our objectives; we are confident that we are building a business with strong and sustainable revenue momentum and growing profitability. We are on track to deliver our FY14 guidance and our medium term targets of 4% revenue CAGR (FY14-17) and 25% EBITDA margin by FY17.