TalkTalk shares jump after it reveals its customer numbers have surged following company overhaul
- TalkTalk shares jumped 8% in early trading as firm unveils sales rise
- Its customer base grew by 80,000 with at least 70,000 more expected this year
- Consumer, wholesale and B2B broadband sales jumped 3.7% year-on-year
- It follows a costly restructure, which dragged the company into the red last year
TalkTalk struck a positive note with investors today as the troubled telecoms group’s sales took off in the first quarter and its customer base swelled.
The firm’s shares shot up by nearly 8 per cent in early trading after it booked a 4.1 per cent jump in sales to £382m, and the boss claimed the company’s major ‘reset’ was starting to pay off.
TalkTalk attracted 80,000 new broadband customers in the quarter, which represents a slowdown from the 109,000 new users it added in the previous three months, but is quadruple the 20,000 recorded in the same period last year.
TalkTalk booked a loss last year after ploughing £119m into a restructure to get it back on track
The company, which now boasts 4.2 million customers, said it expects to have bagged 150,000 new users by the end of the year, and is confident it will generate 15 per cent full year profit growth.
The more upbeat tone will be music to shareholders’ ears, after a costly company overhaul left TalkTalk nursing a £73m loss last year.
The restructure was triggered by a major cyber attack in 2015 that exposed the personal data of nearly 160,000 people to hackers, and saw TalkTalk’s share price tumble from highs of £4.
Today, boss Tristia Harrison hailed a ‘much simpler, lower-cost’ business.
‘As our strategy to be the UK’s leading value provider of fixed connectivity continues to deliver, we are on course to report headline revenue growth,’ she said.
The company also said it was making good progress on its plans for full fibre (FTTP) and flagged a low number of customers switching to another provider – 1.28 per cent.
TalkTalk’s share price jumped almost 8 per cent to 118.9 pence per share as investors took kindly to the news.