Neil DennisShares in Talk Talk, the UK internet and telecoms network, fell heavily on Wednesday after the company reported a first-half loss for its financial year and said its full-year earnings would be at the lower end of forecasts.
While the company said it was experiencing strong demand for its TV, internet and phone bundles, larger than expected costs for updating its mobile phone business led to first-half losses.
Meanwhile, continued cost runs to help drive growth going forward, meant the company would only achieve profits at the lower end of its target range (see below).
First-half highlights
Comparable figures for the same period a year ago are in brackets:
- Headline core earnings at £95m (£144m)
- Statutory operating loss of £42m (£44m profit)
- Statutory revenue of £856m (£902m)
- Statutory loss before tax £75m (£30m profit)
- Net adds +46,000 with double-digit growth in both retail and wholesale bases (-29,000)
- Investment in growth to drive full-year headline core earnings towards lower end of £270m-£300m guidance
- H1 dividend of 2.5p (5.29p)
CEO comment
Tristia Harrison, chief executive (above), said: "When we simplified and reset the business in May we said our priorities were growth, cash and earnings, in that order. The first half performance shows we are delivering on that plan.