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Prices & Quotes - UK Markets - TalkTalk Telecom Group (TALK)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 92.50p
Change Today:
-0.85p
Market Cap:
1,060.05m
Sector:
Fixed Line Telecommunications

TalkTalk FY profits rise, dividend held as fibre sales grow

By Frank Prenesti

Date: Thursday 11 Jun 2020

LONDON (ShareCast) - (Sharecast News) - Telecoms group TalkTalk pulled guidance and set aside 15m for bad debts in 2021 in response to the coronavirus crisis but kept its dividend and reported a rise in core earnings on the back of higher fibre internet takeup.
The company on Thursday reported a 9.7% rise in earnings before interest, tax, depreciation and amortisation to 260m on the back of a 1.9% fall in revenue to 1.51bn. TalkTalk maintained a final dividend of 1.5p a share.

Net fibre customer additions rose to 605,000 compared with 490,000 a year ago. The on-net average revenue per customer fell slightly to 24.35, while the on-net churn rate was steady at 1.2%.

Despite pulling guidance due to Covid-19 uncertainties, the company said it expected to deliver stable headline core earnings year on year based on current trends.

TalkTalk added that it would be cutting back on the use of third party customer service call centres after lockdowns forced closures during the pandemic and the company was forced to moved to online contact.

"We will not be returning to pre-Covid-19 contact centre agent levels, further supporting our cost reductions," the company said.

CMC Markets analyst David Madden said the outlook for TalkTalk's share price remained bearish given increasing competition in the sector after Virgin Media and Telefonica announced plans to merge in a bid to take on rival BT.

"It is a challenging industry as the networks are capital intensive, while at the same time all the players are involved in a race to the bottom in terms of price in an effort to ramp up their customer base. Price wars tend to only benefit the clients, which often comes at the expense of the shareholders," Madden said.

"The TalkTalk share price has been in decline for over five years, and keep in mind the FTSE 250 hit a record high in December 2019. Price comparison websites, like moneysupermarket.com, have become very popular in recent years. As customers are savvier, that has prompted firms to be regularly offering attractive deals."

"I suspect price wars will continue to be common in the sector, even though it will probably lead to further consolidation - just to keep costs down."

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

TALK Market Data

Currency UK Pounds
Price 92.50p
Change Today -0.85p
52 Week High 122.10p
52 Week Low 69.50p
Volume 2,245,887
Shares Issued 1,146.00m
Market Cap 1,060.05m

Performance Indicators

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What The Brokers Say

Strong Buy 1
Buy 0
Neutral 4
Sell 1
Strong Sell 4
Total 10
sell
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

TALK Dividends

  Latest Previous
  Final Interim
Ex-Div 09-Jul-20 28-Nov-19
Paid 07-Aug-20 16-Dec-19
Amount 1.50p 1.00p

Trades for 27-Nov-2020

Time Volume / Share Price
16:35 1,491,037 @ 92.50p
16:29 11 @ 91.75p
16:29 72 @ 91.70p
16:29 138 @ 91.70p
16:29 2 @ 91.70p

TALK Key Personnel

CEO Tristia Harrison