Home
 » ISP News » 
Sponsored

UK ISP TalkTalk Tops 4.236M Broadband Subscribers and Sells Off-Net Base

Tuesday, February 3rd, 2015 (8:03 am) - Score 3,925

Low cost ISP TalkTalk has today published their latest results for Q4-2014 (calendar), which reported that broadband subscribers increased at the stable rate of +15K (same as in Q3) in the quarter to total 4,236,000 and “Superfast Fibre Broadband” (FTTC) surged forward by +88K (up from +67K in Q3) to account for 396,000 of that total.

It’s likely that most of the extra FTTC uptake has been strongly driven by the ISPs current “half-price fibre” promotion, which means FTTC is just £5 per month instead of the usual £10. “While it is clear that at the right price, customers see value in the proposition, penetration remains modest at under 10%,” said TalkTalk while also welcoming Ofcom’s recent margin squeeze test, which they hope “in time … will lead to lower wholesale fibre costs“.

Meanwhile there was a small update on their roll-out of 1000Mbps capable Fibre-to-the-Premises (FTTP) broadband in the city of York, which is being conducted alongside Sky Broadband and CityFibre. “[We] continued to make progress during the quarter with the commencement of civil engineering work including the laying of our first microtrenched fibre runs. We remain on track to connect the first customers onto the network later this year, and are excited about the longer term roll-out prospects,” said the ISP.

The other notable bit of news, which was hidden deep within TalkTalk’s results and could have easily been overlooked, is that they’ve finally reached an agreement for the disposal of their off-net broadband base (i.e. 108,000 customers on BT’s platform instead of LLU) to Fleur Telecom (Daisy Group) and “the transaction [is] expected to complete before the end of Q4 FY15” (i.e. spring 2015).

But the above off-net loss will largely be balanced by TalkTalk’s recent gobble of Virgin Media’s off-net LLU base and Tesco’s Home Broadband LLU subscribers. Last year STL Partners valued TalkTalk’s own off-net subscribers at less than £10m.

Dido Harding, CEO of TalkTalk, said:

Today’s results demonstrate the strong and growing demand for our value-for-money products, as we saw our strongest ever quarter of TV, mobile and fibre adds with our lowest ever reported churn.

We are excited about the future of quad-play. TalkTalk is ideally positioned to push home its strategic advantage in an industry undergoing major changes. Our customers recognise the significant savings they can make on all four products from TalkTalk. We have the largest unbundled network in the UK, a new long-term mobile access agreement, and one of the broadest ranges of film and TV content, all of which is underpinned by a pro-competition regulatory environment.

We remain confident in our plans for delivering sustainable growth and a more profitable business over the medium term, and remain on track to deliver our FY17 targets.”

Elsewhere TalkTalk’s YouView (IPTV) based TV product continued their steady growth by adding +115,000 (same as Q3) customers in the quarter to total 1,332,000 and their Mobile customers increased by +50,000 (up from +40K in Q3) to total 398,000, although most of the extra mobile growth is probably due to the ISP bundling a FREE SIM with their top Plus TV package.

On the financial front TalkTalk reported quarterly revenue of £449m (up from £437m in Q3) and churn reduced from 1.4% in Q3 to 1.3% now. Churn will fall further once their old off-net base is sold because that accounted for much of the on-going customer bleed.

TalkTalk also said that their customers downloaded an average of 55GB (GigaBytes) during December 2014, which doubles to 114GB on their FTTC packages.

Share with Twitter
Share with Linkedin
Share with Facebook
Share with Reddit
Share with Pinterest
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
Leave a Comment
1 Response

Comments are closed.

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Cheapest Ultrafast ISPs
  • Vodafone £23.50 (*26.50)
    Speed: 100Mbps, Unlimited
    Gift: None
  • Gigaclear £24.00 (*49.00)
    Speed: 300Mbps, Unlimited
    Gift: None
  • Hyperoptic £25.00 (*35.00)
    Speed: 150Mbps, Unlimited
    Gift: Promo Code: ROKUGIFT
  • Community Fibre £27.50 (*32.50)
    Speed: 200Mbps, Unlimited
    Gift: First 6 Months Free
  • Virgin Media £28.00 (*52.00)
    Speed: 108Mbps, Unlimited
    Gift: None
Large Availability | View All
New Forum Topics
Cheapest Superfast ISPs
  • Vodafone £19.50 (*22.50)
    Speed 38Mbps, Unlimited
    Gift: None
  • NOW £20.00 (*32.00)
    Speed 36Mbps, Unlimited
    Gift: None
  • Hyperoptic £20.00 (*25.00)
    Speed 50Mbps, Unlimited
    Gift: Promo Code: ROKUGIFT
  • TalkTalk £21.00 (*29.95)
    Speed 38Mbps, Unlimited
    Gift: None
  • Shell Energy £21.99 (*30.99)
    Speed 35Mbps, Unlimited
    Gift: None
Large Availability | View All
The Top 20 Category Tags
  1. FTTP (3667)
  2. BT (3044)
  3. Politics (1975)
  4. Building Digital UK (1945)
  5. FTTC (1897)
  6. Openreach (1862)
  7. Business (1717)
  8. Mobile Broadband (1501)
  9. Statistics (1430)
  10. FTTH (1367)
  11. 4G (1295)
  12. Virgin Media (1196)
  13. Fibre Optic (1184)
  14. Wireless Internet (1176)
  15. Ofcom Regulation (1167)
  16. Vodafone (859)
  17. EE (845)
  18. 5G (792)
  19. TalkTalk (781)
  20. Sky Broadband (757)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact