TalkTalk TV base continues to grow after positive financial year

TalkTalk Telecom Group has reported good financial results for the year – seeing a 1.4% increase in revenues after adding 150,000 TV subscribers in the first quarter.

TalkTalk’s underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin was up strongly at 21.1%, while full-year dividend was up 15.6% to 10.4p, signalling that TalkTalk is on track to deliver medium term targets of 25% EBITDA and 2% company growth revenue.

Total revenue for 2013 reached £1.67 billion, with on-net revenue up 7.9% year on year, and corporate revenue up 1.9% year on year.

After the addition of 150,000 new TV subscribers, TalkTalk’s television base now sits at 230,000, the fastest growing new TV business, according to TalkTalk’s chief executive Dido Harding.

The report also sheds light on TalkTalk customer viewing habits, revealing that most spend their time watching linear TV and catch-up Freeview channels (89%), while just 11% pay for content.

20% of customers admit to buying content, with entertainment the most popular category (40%), followed by films (22%). Perhaps surprisingly, just 6% of TalkTalk customers pay for sport.

Harding said that this has been a “momentous” year for TalkTalk.

“In the year we have returned our customer base to growth, successfully launched TV and mobile handsets, grown TalkTalk Business, and returned to year-on-year revenue growth in the final quarter,” she said.

“We have the UK’s fastest growing new TV business and our customers clearly appreciate its comprehensive content and value for money pricing.

“We will continue to invest in growth and remain confident that having more customers who buy more products and who stay with us longer, puts us firmly on track to achieve our medium term financial targets.”