TalkTalk quarterly revenues drop 3.2% as consumer revenues decline

Revenues at TalkTalk fell in the three months to the end of June as strong growth in its corporate and wholesale broadband revenues was offset by a drop in consumer revenues.

Group revenue slid 3.2% in the quarter compared with the same quarter last year, with a decline in consumer revenues resulting from the smaller average on-net base and the dilutive effect of re-contracting activity. However, TalkTalk said these effects should moderate as the base grows and it drives fibre take-up and other products such as TV. As a result, it continues to expect full year revenues to grow.

TalkTalk added 20,000 new customers versus a 9,000 fall in the first quarter of last year and reduced its churn to 1.2% from 1.4% at the end of last year.

The company said it saw strong growth in the TalkTalk business ethernet base, with 2,000 line added, taking the total installed base of data connections to 44,000.

The group - whose shares tanked in May after it announced a cut to its dividend - maintained its full-year guidance for earnings before interest, tax, depreciation and amortisation of between £270m and £300m.