Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

TalkTalk Telecom Gp (TALK)

  Print      Mail a friend

Tuesday 02 February, 2016

TalkTalk Telecom Gp

Q3 FY16 Trading Update

RNS Number : 7118N
TalkTalk Telecom Group PLC
02 February 2016

2nd February 2016

TalkTalk Telecom Group PLC

Q3FY16 trading update  


·      Q3 revenue growth of 1.8%; On-net net adds -101k

·      Business returning to normal - positive RGU growth in January

·      Free upgrade offer more successful than expected

·      Cyber attack - trading impact £15m; exceptional costs £40m-£45m

·      FY16 EBITDA guidance £255m-£265m; expect to grow final dividend by 15%

·      FY17 EBITDA guidance £320m - £360m, with dividend no lower than in FY16


Q3 Highlights

·      Good on-net revenue performance despite impact of cyber attack

·      On-net revenue +4.5%; On-net ARPU + 6.3% and RGU penetration (+9.2%)

·      On-net net adds -101k (of which estimated cyber attack impact of 95k)  

·      On-net churn 2.1% (of which estimated cyber attack impact of 0.6%)

Dido Harding, CEO commented:

It is encouraging to see the business returning to normal after a challenging quarter that was dominated by the cyber attack.  Our customers have responded well, with almost half a million customers choosing to take up our unconditional offer of a free upgrade.  Both churn and new connections recovered during December and January and independent external research has revealed that customers believe that we acted in their best interest.  In fact trust in the TalkTalk brand has improved since just after the attack and consideration is higher now than it was before the incident.

Looking forward, we expect to deliver a material step up in profits in H2, with full year results in line with market consensus.  With a renewed focus on our existing customers and the benefits of our transformation programme, we expect to deliver a further material improvement in profits in FY17.  As the value for money telecoms provider we are well placed to benefit from the current regulatory reviews in the sector and expect to see quad play driving sustainable long term growth.



8.45am, 11 Evesham Street, London W11 4AR (nearest tube Latimer Rd)

Dial-in:                                          Replay (available for 7 days)

+44 (0) 20 3003 2666                 +44 (0) 20 8196 1998 PIN code 2736730



Investor Relations:   Mal Patel:                           +44 (0) 20 3417 1037

Media:                           Isobel Bradshaw:             +44 (0) 75 8470 8351


Returning to normal after a challenging quarter - positive RGU growth in January

Q3 was dominated by the cyber attack.  Although it took longer than expected to return the business to normal operational effectiveness, customer sentiment improved much more quickly as a result of the actions we took.  The unconditional free upgrade offer that we made available to all customers drove high levels of engagement with a 14% (489k) take-up rate, improved trust in the brand (+14%), and increased brand consideration (+22%).   Key internal metrics such as gross connections and churn, and external survey data on customer sentiment have also been on an improving trend since December and the trading evidence of this is illustrated by the return to positive growth in revenue generating units in January.

Q3 on-net net adds -101k; RGUs -70k but continued growth in RGU/customer

On-net net adds of -101k reflect the combined impact of lower gross connections and higher churn.  We added fewer new customers to the base as we closed down our online sales and service channels as part of our response to the cyber attack, and took longer than expected to restore these channels to full operational effectiveness.  We also experienced higher churn in the immediate aftermath of the attack, driving on-net churn for the quarter of 2.1% - c0.6% of which we estimate was caused by the cyber attack.  We estimate that lower connections and higher churn contributed in roughly equal measures to the 95k of the overall decline in the on-net base.

The period of online shut-down also affected our ability to upsell Mobile, Fibre and TV.  Mobile in particular, is primarily purchased online, and we did not restore full functionality to our mobile sales site until January.  We continued to fulfil new connections and upsell demand through our contact centres with strong volume growth in Fibre (+54k) and more modest growth in mobile (+13k, excluding SIMs taken up as part of the free upgrade offer), helping to drive year-on-year growth in RGUs of 6.2% and growth in RGU/customer of 9.2%.  Total RGUs declined by 70k. 

On-net revenue + 4.5% and ARPU +6.3%; Corporate revenues stable with Data +23%

On-net revenues grew by 4.5% year on year reflecting strong ARPU growth of 6.3% during the quarter driven by the benefits of pricing and RGU growth.  On-net revenue was reduced by the higher churn and loss of upsell and connection activity, which we estimate impacted on-net revenue by c4%. Within TalkTalk Business, Corporate revenues were stable year on year, with strong growth in Data (23.2%) driven by over 2.1k new connections.  Carrier revenues grew modestly (+1.1%), and legacy voice revenues declined 14.8%, in line with the historic trend, while off-net revenue declined by 33% reflecting the impact of the disposal of our consumer off-net base at the end of FY15.  Total revenue grew by 1.8%, with an estimated cyber impact of c3%.


As a result of a c£15m trading impact arising from Q3 disruption (higher churn and foregone revenues, offset by SAC savings on lower connections) and a c£20m impact from the lower customer base with which we entered Q4 and reprioritisation of certain Making TalkTalk Simpler activities, we now expect FY16 EBITDA of £255m - £265m.  The exceptional costs of restoring our online capability with enhanced security features, associated IT, incident response and consultancy costs, and free upgrades, are expected to total £40m-£45m.

Leverage, expressed as Net Debt/EBITDA, is expected to be lower at the end of FY16 than it was at the H1 stage.  Therefore, as guided at the H1 results, and reflecting our confidence in the future performance of the group, we expect to grow the final dividend by 15% year on year.

We are on track to deliver a material step up in EBITDA during FY17.  We expect FY17 EBITDA of £320m - £360m and capex of 6%-7% of revenues, with leverage falling further towards our medium term Net Debt/EBITDA target of 2.0x.  We expect the FY17 dividend to be no lower than in FY16 and for this dividend to be covered by free cashflow, with net debt reducing during the year.

We remain very confident in the long term outlook for the group: in addition to our own focus on existing customers' experience and improving TalkTalk's brand reputation, we see regulatory opportunities that will support both the profitable growth of our fixed line business, and our ambitions in mobile. 

This information is provided by RNS
The company news service from the London Stock Exchange

a d v e r t i s e m e n t