TalkTalk customer numbers increase on back of fibre broadband growth

Telecommunications provider TalkTalk has been buoyed by the popularity of higher speed broadband with its customer base despite revenues nudging lower over the third quarter.

Headline revenues for the London-listed firm dipped 0.7% to £383 million for the past three months compared to a year earlier, although the figure was a marginal improvement on the operator’s previous quarter.

TalkTalk said it was also strengthened after agreeing to sell its fibre networks business to Cityfibre for £200 million last month.

It said the proceeds of the deal will help to boost its financial position, while it will now become a Cityfibre customer with the freedom to sign agreements with competitors.

Tristia Harrison, chief executive of TalkTalk, said: “TalkTalk enters 2020 a far simpler business with a structural advantage to accelerate full fibre nationwide.

“The recently agreed sale of our FibreNation business for £200 million will strengthen our balance sheet while securing a long-term, competitive wholesale agreement, as well as full optionality to work with all full fibre builders.

“As we look forward, we will reap the benefits of this simplification, further cost reductions, a strengthened balance sheet and cash generation.”

TalkTalk hailed its fibre performance over the period, as it “outperformed” the market for both fibre and ethernet growth.

It said it increased the number of customers using both its consumer and business-to-business higher speed products.

The company said it was on track to hit earning expectations for the year, having secured cost reductions after moving its headquarters to Salford from London.

Shares in the company increased by 0.9% to 114p in early trading on Friday.