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TalkTalk TV service grows strongly, dents profits
May 15, 2014 / 6:56 AM / 3 years ago

TalkTalk TV service grows strongly, dents profits

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LONDON, May 15 (Reuters) - 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 catch-up services.

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)

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