FILE PHOTO: A man passes by a brand logo outside the Talktalk head office in London, great Britain May 10, 2017. REUTERS/Neil Hall
LONDON (Reuters) – British broadband provider TalkTalk reported a 17% rise in full-core year profit to 237 million pounds ($300 million), in line with the expectations, as it benefited from lower costs and customers switching to faster fiber products to watch a video.
Chief Executive Tristia Harrison said the simplification of the customer experience over the past two years had strengthened the foundations of the company. “We are convinced that strong cup of EBITDA growth next year and in the medium term,” she said.
TalkTalk said a record 152,000 people took her faster fibre products in the last quarter of the year.
Harrison said 40% of the 4.3 million customer base had now ultra-fast broadband, and they expect an increase of 60% in the next 12 months, driven by the ever increasing demand for video content on Netflix, Amazon and YouTube.
TalkTalk is building its own fiber-to-the-premise network in the northern city of York and three other cities, but it has a more ambitious plan to build a network that 3 million buildings with an investment partner.
Harrison said TalkTalk had received a lot of interest in the network plan, and an information memorandum is going out to potential investors this week.
“We want to have it complete by the end of the first half, so the end of September,” she said.
Shares in TalkTalk the trade 0.3 percent down at 115 pence in morning deals.
Reporting by Paul Sandle, editing by James Davey