TalkTalk had 1,389,000 subscribers to its TV service as of the end of March, a slight fall of 25,000 on the same period last year.
In its latest set of results, the company says that with over a third of its customers now taking TV, the product has helped drive triple-play growth take-up to 1.4 million, or 38% of its phone and broadband base.
TalkTalk also says it has seen on demand usage for its transaction video grow by 20% year-on-year. Furthermore, it has recently added Netflix to its offer, which will from next month also include BT’s sports channels.
TalkTalk’s full year 2016 (ending March 31) total revenues amounted to £1,838 million (+2.4%), while its statutory profit before tax was £14 million (£32 million).
Commenting on the results, chief executive Dido Harding said: “The business bounced back strongly in the final quarter following the cyber attack in October. We recorded our lowest ever churn and stabilised the broadband base, testimony to the speed with which customer sentiment towards TalkTalk has recovered, the success of our greater focus on existing customers, and the growing benefits of our simplification programme. We reported full year results in line with our guidance and have declared a 15% higher dividend for the year.
“TalkTalk is well positioned to build upon our already strong credentials as the UK’s leading value for money quad-play and B2B operator. There has never been a clearer space for a trusted value champion and our learnings from and experience since the cyber attack have helped to focus our plans for the year ahead. We see strong opportunities for growth across all our products, both for consumers and for businesses, against the backdrop of an increasingly supportive regulatory environment. As a result we are reiterating our financial guidance for FY17 of £320 million -£360 million EBITDA.
Meanwhile, Paolo Pescatore, director, multiplay and media at global technology analyst company CCS Insight, said:
“Overall, it has been an extremely tough year for the company following the cyber attack. Though it is trying to paint a positive picture, it is hard to see whether it will fully recover.
“Ultimately, consumers have lost confidence, as shown with fewer total broadband subscribers year-on-year. Despite this, it is still doing a great job of cross selling fibre and mobile into its existing base. The lower base of TV subscribers is a reflection of a shift in strategy to focus on increasing usage rather than acquisition. In addition, the recent initiatives to offer BT Sport will go some way to strengthen its TV offering.
“However, the outlook is going to be challenging for TalkTalk; Vodafone launching a pay-TV service, Sky will offer a mobile service, Virgin Media with a new set-top-box and we expect BT and EE to launch new converged multiplay offerings. Therefore, TalkTalk will have to be novel in all areas in order to keep up with the market.”
