Troubled telco Talktalk’s work cutting costs has paid off, announcing that it is raising its full year earnings guidance ahead of its new TV service launch.
The company has raised its full year earnings by 18%-19%. It earned full year revenues of £1.8bn in the last financial year.
The final quarter of 2011 saw TalkTalks revenue up to £422m from £421m in the preceding quarter, its broadband revenues were up to £312m from £307m, while broadband average revenue per user rose to £25.30 per month from £24.70 in the previous quarter.
Talktalk CEO Dido Harding said she was happy with the results.
"As a result of the success of our unbundling programme, ARPU growth and earlier than expected delivery of cost savings, we are raising full year EBITDA and EPS guidance," she said.
Talktalk has had a rough year, feature troubles with the Advertising Standards Authority (ASA) cracking down on misleading ad claims, a long stretch as the most complained about fixed line broadband provider, and several run ins with Ofcom who have punished the company for misleading billing practises including signing up customers without their knowledge.
The company’s ‘churn’ (customers not renewing contracts) had stabilised, and it claims it has added 63,000 new customers across the last quarter with the trend to continue in 2012.
"We have continued to improve our customers’ experience with further falls in customer service call volumes and an increase in the rate of online self-service. As a result, churn has stabilised and we remain confident of a return to positive total net adds in the first half of 2012," said Harding.
The company’s rapid expansion, acquirining UK Internet service provider Pipex and the UK operations of Italian firm Tiscali, has seen growing pains, and it has also been struggling with its fledgling open platform UK internet TV (and video on demand) partnership, Youview.
The Youview consortium consists of content providers include BBC, Channel 4, Channel 5 and ITV, and communication companies BT and Arqiva. Originally meant to launch in 2010, the project has repadily been earning a reputation as vapourware. Despite Talktalk claims that set top boxes will be rolled out prior to the Olympics in July, the company has only just begun inhouse testing.
Harding did not confirm a launch date for the service.
"Our operational achievements and strong financial performance give us confidence as we look ahead to delivering an exciting strategic agenda through 2012, including the launch of our TV proposition," said Harding.