TalkTalk CEO Harding resigns as Dunstone becomes executive chairman
TalkTalk chief executive Dido Harding is to resign after seven years at the helm, with chairman Charles Dunstone becoming executive chairman from May after stepping down from the same role at Dixons Carphone.
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In a separate announcement, TalkTalk said revenue and earnings for the current financial year would be affected by re-contracting activity alongside its new low fixed price tariffs, but will be in line with previous guidance.
Tristia Harrison, the current managing director of TalkTalk’s consumer business, will succeed Harding as chief executive and Charles Bligh, the current managing director of TalkTalk Business, will become chief operating officer.
Harding said: "After seven extraordinary and fulfilling years, during which we have transformed TalkTalk's customer experience and laid the foundations for long term growth, I've decided it's time for me to start handing over the reins at TalkTalk and focus more on my activities in public service."
From 30 April, Lord Livingston, former Dixons CFO, BT CEO and Minister of State for Trade and Investment, will become the new chairman of Dixons Carphone after Dunstone, who will remain a senior adviser to the company, leaves.
Tony DeNunzio will be appointed deputy chairman and chairman of Dixons Carphone’s remuneration committee from 30 April, in addition to his current role as senior independent director.
Dunstone, who founded Carphone Warehouse 27 years ago and oversaw the merger with Dixons three years ago, said: “I remain a committed shareholder and, in my new role as a senior advisor, I will continue to take an active interest in the business and look forward to seeing many colleagues throughout the year.”
Lord Livingston added: "I am proud to be appointed chairman. It is a remarkable achievement by Charles to have grown this business from one store in the Marylebone Road to a business today that serves millions of customers across eleven countries and employs more than 42,000 people. I am delighted that he will remain very much connected with the business."
Nick Bubb, independent retail analyst and consultant, said: "Well, 'once a mobile phone man always a mobile phone man', as they say, so it’s perhaps no great surprise that Charles Dunstone wants to return to his roots by getting more involved with TalkTalk, but investors in Dixons Carphone will be wondering what his move says about the prospects for the business three years on from the merger."
George Salmon, equity analyst at Hargreaves Lansdown, said that Dunstone’s main challenges will be rebuilding trust in the TalkTalk brand and improving relationships with customers, as the "dark days of the cyber attack are still pretty fresh in people’s minds".
"For now though, investors will be relieved that the group says it’s on track to meet profit guidance, especially after November’s half year results were less than glowing. Customer churn has ticked up slightly, but over half a million customers have elected to re-contract onto the group’s fixed low-price plans. More customers on low-price plans isn’t exactly what one would want, but the group’s hand has been forced by the cyber attack. Defending market share at all costs has had to take priority.”
Salmon added: “On a more positive note, while the group hardly has bags of momentum just now, these new, long-term contracts should mean the new CEO has a more stable revenue base to work with going forwards.”