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Focus back on ARPU: TalkTalk Group Q1 2018/19 results - Venture Insights

Report Overview

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Focus back on ARPU: TalkTalk Group Q1 2018/19 results

PublisherEnders Analysis.
Publish Date July 20, 2018
Sector Fixed Line (Internet and Voice), Media, Telecom, TV.
Company TalkTalk.

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TalkTalk had another strong quarter for broadband net adds, adding 80k versus its full year target of 150k+. All of this was due to strong wholesale, with retail net adds slightly negative, although in the market and seasonal context even this retail performance is quite respectable

On-net revenue growth improved strongly to around 4%, with its ARPU decline moderating to 2%, and ARPU should be helped further by price increases for existing and new customers alike in July

TalkTalk therefore looks well placed to hit full year targets, albeit with considerable help from its wholesale customers and some aggressive price increases. The focus back onto ARPU and away from (expensively) chasing retail subscriber growth is nonetheless to be applauded