Manchester move helps internet firm get back on track
The move to Manchester has helped stabilise costs at online firm TalkTalk.
Earlier this year the firm moved its headquarters out of London and to Media City with the aim of cutting costs.
The firm has published its first set of results since the move.
The firm saw EBITDA growth of 16.7% driven by a larger average base, increased Fibre penetration and a materially lower cost base.
The firm had a statutory operating profit of £47m and a statutory loss before taxation of £5m.
There was a £42m cost associated with reorganising and simplifying the business including the move to Manchester.
There was accelerated Fibre uptake with 490k net adds in the year and a customer base growth of 150k (FY18: 192k).
The firm said there was good progress on cost reductions, including the move of the HQ, creating one main campus and a more efficient operating model.
Tristia Harrison, chief Executive, said: “Today’s results show that two years after re-setting TalkTalk, the fundamentals of the business are much stronger.
“We have grown our customer base in a disciplined way, accelerated Fibre take-up, and reduced costs. This is translating to revenue growth and a 17% increase in Headline EBITDA.
“Looking forward the business will continue with the same plan, focused on accelerating Fibre, reducing costs and simplifying the business.
“Having re-structured the customer base to reduce the difference between our front and back book pricing, the business is also well placed to benefit from imminent regulatory changes related to fairer pricing.
“These trends, coupled with ongoing cost reductions including our move to one Salford campus, mean we are confident in delivering strong headline EBITDA growth both next year and over the medium term.”
