TalkTalk rings up higher growth targets for 2017
TalkTalk, the FTSE 250 telecoms group, raised its growth targets for 2017 after posting 4.2% growth in full year turnover as revenues accelerated in the fourth quarter.
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TalkTalk Telecom Group
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16:34 11/03/21
Results were broadly in line with expectations, although fourth-quarter sales of £475m was slightly ahead, but chief executive Dido Harding surprised the market by raising her target for revenue compound annual growth rate (CAGR) target for 2017 and beyond to 5%, from the previous 4%.
The company said it remained on track to deliver its 25% EBITDA margin target in 2017, as the acquisitions of Tesco and Virgin broadband, blinkbox and tIPicall to drove future top-line growth.
The company said it expects an aggregate improvement in earnings before interest, tax, depreciation and amortisation over next two years to finance its investment in growth.
"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," Harding added.
"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."
For the year to 31 March, total revenue rose 4.2% to £1.8bn, with headline EBITDA rising 15.0% to £245m and headline earnings per share up 21% to 8.2p.
The dividend per share was hiked 15% to 13.8p in line with plans.