TalkTalk confirms Free TV package

Announcing its Q1 results, UK telco TalkTalk has confirmed the launch of Free TV for its TalkTalk Plus customers. Customers will be able to pre-register immediately for their free YouView set-top box with no additional monthly subscription.

The company says the incremental cost of acquiring new triple-play customers of £140 will deliver positive EBITDA over the lifetime of the contract. Thereafter, it expects TV to reduce churn materially, expand its broadband market share, grow ARPU, and drive incremental value.

“In providing our customers with more reasons to stay with us for longer, and by cost effectively attracting new broadband customers, we believe our triple play strategy will add significant value to shareholders. The rate at which we drive triple-play penetration into our customer base will therefore be one of the key components in delivering our medium term financial targets of 2 per cent CAGR in revenue and 25 per cent EBITDA margin” said TalkTalk.

The company expects to launch a TV product for its ‘Essentials’ customers during 2013 and over time, expects the vast majority of its customers to have access to a triple-play proposition.

TalkTalk has also struck a deal with BSkyB to offer all Sky Sports channels (including Live Formula 1), Sky Movies and Sky basic channels on a flexible, monthly basis. Customers had previously been able to subscribe to some Sky channels directly through Sky’s ‘Sky by Wire’ service. These customers will migrate to Talk Talk’s pay TV service.

TalkTalk’s Q1 results revealed a 10 per cent growth year-on-year in fully unbundled customers, with continued strong take-up of Plus (+66,000 in Q1). Total revenue was £414 million, on-net revenue £285 million (+9.0 per cent year-on-year).

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