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Trading statements

TalkTalk sees re-contracting activity impacting EBITDA

01 February 2017 07:32

TalkTalk Telecom says that strong re-contracting activity will impact current year revenue and EBITDA, which it sees in line with previous guidance. The company also named Tristia Harrison as its incoming CEO.

It added that the strong re-contracting activity would deliver sustainable long-term benefits in the form of a more stable and higher quality base.

As previously announced, TalkTalk expected the final dividend for FY 2017 to be unchanged year-on-year at 10.58p.

"We have continued to drive improved cash flows during H2, and as a result year-end leverage (net debt/EBITDA) is expected to be below 2.5-times," said TalkTalk in a statement.

"We have also continued to make good progress towards diversifying our sources of finance and extending the maturity of our facilities and in January, we refinanced £400m of our short dated bank debt through the successful issue of a debut 5-year public bond."

For Q3, the company recorded group revenue of £435m.

"As previously indicated, the strong re-contracting activity, while delivering sustainable long term benefits in the form of a more stable and higher quality base, will impact current year revenue and EBITDA," the company said in a statement.

"As a result, we expect FY EBITDA to be in line with previous guidance."

TalkTalk separately said that CEO Dido Harding had decided to step downin May 2017. Harding would be succeeded by Harrison, currently MD of TalkTalk Consumer.

Charles Bligh (currently MD, TalkTalk Business) will become Chief Operating Officer. From May, non-executive chair Charles Dunstone would assume the role of executive chair. This would be after he stepped down as chair of Dixons Carphone on May 1.

Story provided by StockMarketWire.com

Related Company: TALK

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