UK operator TalkTalk reported a revenue up 4.2 percent to GBP 449 million thanks to a launch of quad-play in its third quarter to the end of December 2014, compared to a GBP 431 million VAT ruling-adjusted revenue in the year-earlier period. The company’s on-net revenue rose by 6 percent to GBP 334 million and corporate revenue increased by 8 percent to GBP 94 million. TalkTalk saw its on-net ARPU rise by 2.6 percent to GBP 27.05 a month in the third quarter, as it reduced on-net churn to 1.3 percent, its lowest level of three years. The operator, which introduced free Sim cards for its broadband customers last quarter, said it took an 11 percent share of the Sim-only market in December.
It saw its strongest growth ever in the take-up of new TV, mobile and fibre products during the quarter. TalkTalk added 15,000 broadband, 50,000 mobile, 80,000 fibre and 115,000 TV net customers in the period.
TalkTalk also announced that it has agreed to sell its off-net broadband customer base to Daisy’s Fleur Telecom, with the deal expected to close by the end of the fiscal year. It consists of 108,000 Talktalk customers on BT’s network. ISPreview writes that these customers were valued at under GBP 10 million by STL Partners last year. The disposal is balanced by Talktalk’s recent acquisition of Virgin Media off-net customers and Tesco’s home broadband LLU subscribers.
Operating highlights include signing an MVNO deal with Telefonica to support quad-play grotwh, the acquisition of Tesco broadband and Blinkbox movies, and the start of FttP civil engineering in York. CEO Dido Harding welcomed the company’s best quarter ever and expressed confidence in being able to delivers sustainable growth and more profitability in the medium term. It is on track to achieve at least 4 percent revenue growth this year and to meet next year’s targets.
