Tiscali deal gives Talk Talk bumper figures
THE demerged Talk Talk Telecom business has reported a significant increase in earnings following last year’s acquisition of Tiscali.
The group, which demerged from Carphone Warehouse last year, said revenue for the year to March 31 was £1.6bn, up 21%, and earnings before interest, tax, depreciation and amortisation jumped 27% to £230m.
This growth was down to the £236m Tiscali acquisition – the underlying performance was flat but the group said it was trading in line with expectations.
Talk Talk’s business broadband division Opal, which employs around 600 staff at Warrington, reported a 10.5% increase in revenue to £327m. Excluding the Tiscali deal, this growth was 2.7%.
In the update chairman Charles Dunstone said the business had performed well during the year to March 31, becoming the fastest growing internet service provider in the UK.
He added: “Our straight-forward, value-for-money customer propositions, and the benefits of our investment in the UK’s most extensive next generation network, enabled us to report strong revenue, profit and cash-flow growth.”
Last year Carphone Warehouse split its business into two separately listed companies: TalkTalk for broadband and fixed-line services and Best Buy Europe, a retail and distribution business operated in a venture with American giant Best Buy Co.
Talk Talk became Britain’s biggest provider of residential broadband, with 4 million customers and 23% of the market, after completing the purchase of Tiscali UK on July 3.
