TalkTalk UK: Post-lockdown challenges and opportunities

Report Overview

TalkTalk UK: Post-lockdown challenges and opportunities

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TalkTalk UK: Post-lockdown challenges and opportunities
TalkTalk started its new financial year with revenue growth declining to -8% in Q1, although this is partly lockdown-related, and costs have also declined as churn plummeted
While backbook pricing continues to be a challenge, new customer pricing continues to firm, which makes its expectation of stable/growing EBITDA for FY2020/21 possible albeit still difficult
The company expects to launch full fibre products from Openreach imminently, and from CityFibre before the end of the year, with the adoption and eventual economics of these crucial to its medium and long-term future

Contents

Subscriber base stable in lockdown

ARPU and revenue decline accelerates

Existing customer pricing still under pressure…

…but relief on new customer pricing

Outlook still challenging

List of charts/tables

Figure 1: TalkTalk ARPU, subscriber, and revenue growth

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

Figure 3: TalkTalk monthly on-net churn

Figure 4: Consumer on-net operating performance

Figure 5: Group revenue growth

Figure 6: TalkTalk price increases

Figure 7: TalkTalk entry-level and high-speed broadband pricing (£/month)

Figure 8: Broadband entry-level dual-play pricing, new customers (£/month)

Figure 9: Broadband high-speed pricing, new customers (£/month)