Talktalk hails ‘structural advantage’ after £200m Cityfibre deal
Talktalk hailed the popularity of higher speed broadband with its consumer and business customers today as it revealed it outperformed the market on fibre and ethernet growth in its third quarter.
It also claimed it has a “structural advantage” after agreeing to sell its fibre networks business to Cityfibre last month.
Headline revenue slipped 0.7 per cent year on year to £383m in Talktalk’s third quarter, it said today. But that figure was up £6m from the mobile operator’s second quarter.
And headline data revenue rose 16 per cent year on year to £51m, while it added 148,000 new fibre customers – 2,000 more than a year ago.
Talktalk sold its full fibre business to Cityfibre in a £200m deal announced last month. Today the operator said proceeds from the sale would strengthen its balance sheet. And Talktalk will now become a Cityfibre customer with the freedom to sign agreements with competitors.
Despite a decline in voice-driven revenue, Talktalk said its earnings before interest, tax, depreciation and amortisation (Ebitda) remain unchanged for the full year.
Chief executive Tristia Harrison said: “TalkTalk enters 2020 a far simpler business with a structural advantage to accelerate full fibre nationwide. The recently agreed sale of our Fibre Nation business for £200m will strengthen our balance sheet while securing a long-term, competitive wholesale agreement, as well as full optionality to work with all full fibre builders.
“In the last quarter, we have outperformed the market on fibre and ethernet growth, with increasing numbers of customers in both consumer and B2B taking higher speed products.
“We have continued to see industry-wide voice decline, but with the successful completion of our move from London to the north west and the resulting cost reductions our Ebitda outlook remains unchanged.”