TalkTalk sees red after chucking £75m on restructuring bonfire

TalkTalk is taking steps to claw back market share

TalkTalk is taking steps to claw back market share

Headline EBITDA for the 1st-half was GBP 95 million (excluding MVNO loss), compared to GBP 144 million a year earlier, with a statutory operating loss of GBP 42 million, compared to a year-earlier profit of GBP 44 million.

Revenue fell 5% to £828mln with declines across on-net, off-net and corporate products.

Nevertheless, TalkTalk guided that full-year earnings would be at the lower end of its £270m to £300m range.

Shares dropped 12.72% to 165.40p in early trading.

Chief exec Tristia Harrison said: "When we simplified and reset the business in May we said our priorities were growth, cash and [earnings before interest, taxes, depreciation and amortization] in that order".

Harrison said the business had reversed customer losses and seen "strong demand" for its new cut-price TV, internet and phone services. Customer churn fell to 1.3 percent in the 1st-half, from 1.5 percent in H2 FY 2017.

TalkTalk will take a £31mln charge as a result of a strategy review of its mobile business, launched in September, in relation to decommissioning costs, asset write-offs, provision releases, onerous supplier commitments and redundancies.

TalkTalk swung to a heavy loss in the first half and signalled that its full-year profits will come in at the lower end of guidance, as it counted the costs of a failed attack on the mobile market and spent freely to attract new broadband subscribers.

TalkTalk also took a £59m exceptional charge for costs "associated with implementing changes to the Group's organisational structure under the new leadership team".