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In a perhaps unsurprising development, the TalkTalk Group finally published their annual accounts yesterday and revealed that they made a statutory loss before tax of £465m for the year ended 28th February 2025 (up from £153m last year). The company also lost 420,000 UK broadband customers, leaving them with a group total of 3.2 million.
Quite a few of the figures in the group’s latest report were already in the public domain (here and here), although the full results provide a much more all-encompassing summary of the challenges TalkTalk has been facing. All of this helps to illustrate why the recent £100m funding deal (here), which itself followed last year’s £400m refinancing package – necessary to avoid a default on its debts (here and here), were so crucial.
The group, which has also experienced some job losses (here) and now has 1,570 employees (down from 2,065), is still not out of the woods. The company has thus continued to hunt for a buyer for different parts of their business (here), while also recently migrating another batch of their legacy broadband and phone customers (here) over to the Utility Warehouse (Telecom Plus) and suffering payment disputes with suppliers (here and here).
The results note that monthly churn increased year-on-year to 2% (up from 1.9%), while revenue declined to £1,412m (down from £1,518m) and on-net average revenue per user (ARPU) fell slightly to £25.46 (down from £25.74), mostly due to price rises being offset by the reduction of usage and boosts (add-ons). Gross profit now stands at £692m (down from £746m), although headline operating costs did decrease to £418m (down from £495m).
The overall level of net debt (excluding leases) has now risen from £985m last year to £1,206m this year, or from £1,785m to £1,966m if you include leases. But the proportion of their broadband customer base now on full fibre (FTTP) lines has increased from 15% to 22%.
TalkTalk Statement
“The markets in which our businesses operate have remained fiercely competitive. As a value challenger brand, we have continued to provide a value-based proposition to both wholesale and consumer customers and have remained focused on product reliability and improving customer service.”
