Preliminary results for the 12 months to 31 March 2015 (FY15)

  • 4.2%* revenue growth in year, accelerating to 6.0% in Q4
  • 1m new Revenue Generating Units added in FY15 (+20%) and lowest churn (Q4FY15: 1.3%)
  • Continuing strong growth in Data revenues (+40%) driving growth in Corporate (+10%)
  • Acquisitions of Tesco and Virgin broadband, blinkbox and tIPicall to drive future growth
  • Dividend per share 13.8p (+15%) in line with commitment
  • Raising revenue CAGR target to FY17 and beyond to 5%
  • Raising cumulative efficiencies expected from MTTS by FY17 to £70m
  • On track to deliver 25% EBITDA margin in FY17

FY15 Financial Highlights

  • Total revenue up 4.2%* to £1,795m (FY14: £1,722m*)
  • Corporate revenue up 10% to £375m (FY14: £340m)
  • Headline EBITDA +15.0% to £245m (FY14: £213m)
  • Headline Earnings Per Share up 21% to 8.2p (FY14: 6.8p)
  • Statutory Profit After Tax up 157.1% to £72m (FY14: £28m)

*Statutory revenue after £5m exceptional VAT adjustment in FY14

Q4 Operating Highlights

  • Total revenue up 6.0% year-on-year to £475m; Corporate +14.3%
  • On-net revenue up 7.3% year-on-year to £351m; On-Net ARPU +4.6% to £28.18
  • 47,000 phone and broadband net adds
  • 83,000 fibre net adds; 66,000 Mobile net adds; 82,000 TV net adds

Dido Harding, Chief Executive of TalkTalk commented:

We have delivered on our revenue growth guidance as planned, and have exited the year with our strongest ever quarterly revenue growth of 6%, and our lowest ever level of churn.  British consumers and businesses increasingly appreciate TalkTalk’s value for money products, and we are focused on improving our customers’ experience still further and growing our already flourishing quad play business.

We are upgrading our revenue CAGR target to FY17 to 5% and are on track to deliver our 25% EBITDA margin target in FY17. Beyond FY17 we expect to continue to grow revenues by at least 5% per annum and we are excited about the opportunities that building an ultrafast fibre network and scale inside out mobile network will bring.

We believe firmly that competition will drive the innovation and investment that Britain needs in this essential infrastructure and urge the respective regulatory bodies currently reviewing the various mergers and industry structure, to put strong competition at the heart of their decisions.