TalkTalk Q1 revenue dips; FY guidance reiterated

20th Jul 2016 07:39

(ShareCast News) - Broadband provider TalkTalk reported a small drop in revenues for the first quarter as it lost customers, but reiterated its guidance for the full year.In a trading update for the three months to 30 June, the company said revenue was down 0.4% as its broadband base declined by 9,000. Corporate revenue was up 7.5%, while data revenue grew 38.5%, helping to offset a decline in legacy voice of 31%.The company saw Mobile net adds of 48,000 and Fibre net adds of 36,000.Meanwhile, the TV base was down 23,000 at the end of the quarter as the group maintained its focus to drive engagement rather than base growth.On-net churn was down on the year and stable on the quarter at 1.36% versus 1.34% in the fourth quarter of last year.TalkTalk reaffirmed its full-year financial guidance, saying it expects 2017 revenues to grow modestly thanks to a broadly stable broadband base and continued growth in TalkTalk Business, with headline earnings before interest, tax, depreciation and amortisation of between £320m and £360m.Net debt to EBITDA is expected to fall towards its target leverage of 2x by the end of full-year 2017 and the dividend is seen at least in line with full-year 2016 and covered by free cash flow.