Demand for TV helps TalkTalk return to revenue growth

Thu May 16, 2013 2:34am EDT

LONDON May 16 (Reuters) - British telecoms operator Talk Talk said it was "firmly on track" to achieve its targets after demand for its new TV and mobile services helped the once struggling group to return to revenue growth in the fourth quarter.

The group, which competes with BT, Virgin Media and BSkyB, said revenue grew 1.4 percent in the final three months as it added 10,000 net new customers, its second quarter of positive net additions.

"This has been a momentous year for TalkTalk, which is now a fundamentally better business than it was three years ago," Chief Executive Dido Harding said.

"In the year we have returned our customer base to growth, successfully launched TV and mobile handsets, grown TalkTalk Business, and returned to year-on-year revenue growth in the final quarter."

TalkTalk, which is aimed at the value end of the market, launched a YouView digital television service in September, designed to increase customer loyalty and to enable it to compete with the likes of BSkyB and BT which offer their customers multiple services.

TalkTalk added 150,000 TV subscribers in the period, taking the subscriber base to 230,000, growing the business at a rate of 12,000 per week. It also added 23,000 customers to its new mobile service, taking the base to 175,000.

Overall, the group posted full-year revenue at 1.7 billion pounds, down 1 percent but in line with forecasts. Headline core earnings were also broadly in line with forecasts at 290 million pounds.

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