Wobbles ahead for TalkTalk’s fine balancing act

Report Overview

Wobbles ahead for TalkTalk’s fine balancing act

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Wobbles ahead for TalkTalk’s fine balancing act
TalkTalk is delivering on its subscriber and revenue growth targets but is straining to get there. Price rises such as a £4 ‘TV access fee’ look increasingly risky
Whilst migrating to discounted high-speed helps to deliver top-line growth, margins are c. 40% lower; an unwelcome dent to already negative cashflow and stressed leverage
Both TalkTalk’s focus on revenue growth in a tight market and fibre rollout plans look increasingly unaffordable; a more modest ambition of stable revenues might allow a healthier business model to unfold