TalkTalk raises dividend after its profits soar
TALKTALK yesterday unveiled plans to increase its dividend after its pre-tax profits more than doubled last year.
In a bullish trading update, the telecoms group reported annual pre-tax profits rose to £127m from £57m the year before, with ebitda up 18 per cent to £326m.
“We have delivered our 20 per cent ebitda margin target significantly ahead of schedule,” chief executive Dido Harding said, referring to the company’s turnaround strategy outlined 18 months ago.
“We are underscoring our confidence in the long term prospects for the business by raising our medium term ebitda margin target to 25 per cent and a commitment to grow the full-year dividend by at least 15 per cent per annum”, Harding added.
TalkTalk lost 13,000 customers in the fourth quarter, a vast improvement on the 43,000 users who changed providers in the same period the year before, and said it expects to deliver its first total customer growth this quarter.
Harding said she anticipates the launch of Youview, set for the second quarter of this year, to boost TalkTalk’s customer numbers.
“The more products we offer, the more loyal our customers will be,” she told City A.M.
But she said she is “not so fussed” about the TV service’s release date, which has been delayed several times.
TalkTalk shares jumped by a fifth to close yesterday at 159p.