Report Overview


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TalkTalk Group Q2 2014/15 results: Solid quarter, but guidance still challenging


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TalkTalk had a solid quarter for net adds, helped by churn being held well under control, with broadband perking up, TV dipping down as pre-warned, and fibre and mobile both significantly accelerating.
Revenue and ARPU growth accelerated, although not by as much as might have been expected given the timing of price rises, with the lower priced SimplyBroadband product likely still driving significant ARPU dilution.
The company disappointed the financial markets with a warning of higher SACs in H2, and its medium term EBITDA margin target remains challenging, but continued revenue growth and margin expansion are nonetheless likely.