Broadband ISP TalkTalk Issue Trading Update and Explores New Ownership Structures

The TalkTalk Group has today published a very brief trading update for the half year ended 31st August 2025, which largely only highlights the positives (unlike their annual accounts) and claims to have “delivered a solid first-half performance“. The group is currently aiming to tackle its debts by targeting £146m in total savings by FY28.

The group, which recently launched a major brand refresh and advertising push for its consumer broadband ISP business (here), is currently still doing everything it can to cut costs and to tackle their underlying debt problem; including the possible disposal (sale) of its remaining businesses (here) and more job cuts (here).

All of this follows last year’s £400m refinancing package, which avoided the immediate risk of a default on its debts (here, here), and the recent £120m funding deal (here). Sadly, the latest results for H1 FY26 fail to add much detail to the current overall picture of the business, but it does highlight a few of the recent positives.

TalkTalk’s H1 FY26 Trading Update

H1 Financial Highlights

• Cash EBITDA (pre-IFRS) £74m (H1 FY25: £72m), an improvement of £2m year-on-year, with lower SAC and opex offsetting reduced base and lower IP sales.
• Cost transformation on track, with the Group targeting £146m in total savings by FY28, supported by efficiencies, IT simplification, and the retirement of legacy copper infrastructure. 
• The Group’s cash discipline has been maintained, supported by proceeds from £44m of non-core asset disposals and £74m of new funding following recent funding round.

H1 Operational Highlights

• TalkTalk’s consumer business delivered a brand refresh, initiated the rollout of TalkTalk U (a differentiated Wi-Fi product that uses smart data to deliver coverage around the home at speeds that flex to customers’ needs) and continued the migration of customers to the Kraken customer platform.
• PXC increased its FTTP AltNet penetration to 24%, rolled out new VoIP and Ethernet over FTTP products, and achieved further cost and automation gains, with over 95% of next-generation broadband orders now fully automated.

Having created the TalkTalk consumer and PXC businesses from the former consolidated group structure 18 months ago, the group now say they expect to “commence a more formal process to explore new ownership structures for the separated businesses” and confirms that it has appointed PJT to advise on “strategic options for both businesses” (this largely links back to all that ongoing talk of a sale).

James Smith, CEO of TalkTalk Group, said:

“Over the past six months, we’ve made huge progress in continuing to transform and simplify the group. Our consumer business has returned to its challenger roots, with the launch of TalkTalk U and our partnership with Kraken to deliver best in class customer service. At the same time, PXC is leading the way in next-generation connectivity, expanding its AltNet footprint and rolling out next-generation business-grade products.

Despite considerable pricing competition across all our markets, we’ve continued to deliver by staying disciplined, driving efficiency, and focusing relentlessly on value. We remain on track to achieve our full-year financial guidance.”