Charles in charge

10 May 2017 By Liam Proud Follow @liamwardproud

The UK broadband supplier cut its dividend and said it wants to get back to its low-cost roots. Competing on price to win subscribers is sensible as far as it goes, but since TalkTalk’s larger rivals offer juicy TV, mobile and internet bundles, the battle is not evenly pitched.

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TalkTalk on May 10 cuts its dividend and reported full-year EBITDA below its previous guidance.

The UK broadband provider said its final dividend for 2017 would be 5 pence a share, compared with 10.6 pence a year earlier. It expects a full-year total cash dividend of 7.5 pence in 2018, and will start to grow the dividend once earnings are growing again and net debt is moving towards two times EBITDA, compared with the current level of 2.6.

Revenue excluding non-recurring items was just under 1.8 billion pounds in the 12 months to March 31 – a 3 percent fall from the previous year. EBITDA, also excluding one-offs, rose by 17 percent to 304 million pounds over the same period, but was below its previous guidance of between 320 million pounds and 360 million pounds.

Executive Chairman Charles Dunstone said: “My focus for the company is growth, cash generation and profit - in that order.”

TalkTalk shares were down 10 percent to 164 pence at 0923 BST.

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