Report Overview

TalkTalk UK: a welcome slowdown?

TalkTalk hit the bottom end of its (revised) 2018/19 EBITDA guidance, an achievement given fierce price competition and the margin-dilutive effect of high speed upgrades

This is however helped by one-off Openreach price cuts, and price rises for ancillary products (voice calls and pay-TV) and out-of-contract customers that look hard to sustain

Subscriber growth slowed dramatically in Q4, and continuing this more measured approach could help the company counter multiple market pressures, and perhaps even lead to a détente in the current price wars

Contents

Subscriber growth slows, but high speed still high

ARPU growth improves, but price driven

Group revenue growth hit by corporate

FibreNation still awaiting funding

EBITDA under pressure

List of charts/tables

Figure 1. TalkTalk entry level pricing versus ARPU (£ per month)

Figure 2. TalkTalk on-net net adds (000)

Figure 3. TalkTalk monthly on-net churn

Figure 4. TalkTalk price rises

Figure 5. Broadband high speed dual-play pricing, new customers (£/month)

Figure 6. Environmental obesity risk factors by income quintiles for 11-year-olds, 2016 (%)

Figure 7. Broadband entry level dual-play pricing, new customers (£/month)

Figure 8. TalkTalk monthly pricing (£/m)

Figure 9. Revenue growth

Figure 10. EBITDA progression from FY 17/18 to FY 18/19

Figure 11. Results and guidance

Figure 12. EBITDA progression from FY 18/19 to guidance FY 19/20