LONDON May 15 Telecoms group TalkTalk
vowed to grow its dividend by no less than 15 percent next year
after reporting its first full-year of revenue growth, helped by
its increasingly popular TV service.
TalkTalk, which took a hit to profits due to the cost of
investing in the service, launched its TV offering over 18
months ago, competing with established players BSkyB and
Virgin Media, and a revitalised offer from BT.
The group said on Thursday it had signed up over 1 million
customers to the service, making it the fastest growing TV
business in Britain.
Investment in the TV service caused the group's
profitability to drop in the first half but this rebounded in
the second. Profit before tax for the year was down 75 percent
to 31 million pounds.
TalkTalk has found success in the pay-TV market by targeting
those people looking for a cheaper offer with some additional
channel choices, particularly in family entertainment, and
The group said the demand for TV and its core business of
broadband and telephony had helped it to report its first full
year of revenue growth, up 3.4 percent to 1.7 billion pounds and
in line with forecasts.
(Reporting by Kate Holton; editing by Sarah Young)