Cancellation of live sports leads to short-term fall in TalkTalk's revenue

THE cancellation of live sports due to the pandemic was one of the factors behind a contraction in short term revenue for TalkTalk.

Tristia Harrison

TalkTalk Telecom Group has provided a trading update for the three months to June 30 2020.

The company's headline revenue, excluding Carrier and Off-net, was £358m, compared with £387m in the same period the year before.

Sign up to our Business newsletter

Sign up to our Business newsletter

The group said the contraction was primarily due to the impact of COVID-19, which included trading restrictions and cancellation of live sports, and ongoing industry-wide declines in voice usage exacerbated by the lockdown.

Tristia Harrison, the chief executive of TalkTalk, commented: "As the UK's internet usage continues to soar, our role as the UK's only scale affordable provider of Fibre broadband has become even more important. Given this, we see a positive outlook to H1 and are confident in our full year plan to deliver stable to growing Headline EBITDA with strong cash conversion.

"As with many businesses, we have seen a short-term COVID-19 impact primarily due to lockdown trading restrictions and cancellation of live sports.

"Revenue, Fibre net adds and ARPU trends have all improved in June and July as lockdown restrictions have eased. Encouragingly customer payment trends are in line with the pre-COVID-19 period and we continue to see an ever-increasing demand for our higher speed Fibre and Ethernet products.

"We are also pleased to have launched our new 'Business Grade Homeworker' packages for consumers and businesses, as the country adapts to working from home for the long-term.

"It is early days, but sales are strong. In addition, we are launching our Full Fibre services with Openreach and continuing to sell on the CityFibre Holdings network at scale. The last few months have shown that the Government's ambition to reach UK-wide Full Fibre penetration by 2025 is more essential than ever before."

In 2018, TalkTalk revealed that it had launched a new company called FibreNation, which will roll out fibre to up to 60,000 homes in Harrogate, Knaresborough and Ripon.

TalkTalk also recently revealed that it had become a member of the Government’s Northern Powerhouse Partner Programme.

The company said that the move reinforced its commitment to growing the economy in the North of England.

Editor’s note: first and foremost - and rarely have I written down these words with more sincerity - I hope this finds you well.

Almost certainly you are here because you value the quality and the integrity of the journalism produced by The Yorkshire Post’s journalists - almost all of which live alongside you in Yorkshire, spending the wages they earn with Yorkshire businesses - who last year took this title to the industry watchdog’s Most Trusted Newspaper in Britain accolade.

And that is why I must make an urgent request of you: as advertising revenue declines, your support becomes evermore crucial to the maintenance of the journalistic standards expected of The Yorkshire Post. If you can, safely, please buy a paper or take up a subscription. We want to continue to make you proud of Yorkshire’s National Newspaper but we are going to need your help.

Postal subscription copies can be ordered by calling 0330 4030066 or by emailing [email protected] Vouchers, to be exchanged at retail sales outlets - our newsagents need you, too - can be subscribed to by contacting subscriptions on 0330 1235950 or by visiting www.localsubsplus.co.uk where you should select The Yorkshire Post from the list of titles available.

If you want to help right now, download our tablet app from the App / Play Stores. Every contribution you make helps to provide this county with the best regional journalism in the country.

Sincerely. Thank you.

James Mitchinson

Editor