TalkTalk shares fall on profit warning and fibre investment plans

09 February, 2018, 01:17 | Author: Regina Silva
  • Reuters

TalkTalk (TALK.L) asked investors on Thursday for 200 million pounds ($278 million) to help fund a plan to connect three million British homes and businesses with ultrafast broadband and keep it competitive with bigger rivals.

TalkTalk said it now expected full-year 2018 core earnings to come in between 230 million to 245 million pounds.

Commenting on the venture, Executive Chairman Charles Dunstone said: "By signing heads of terms with Infracapital we are making good progress towards putting TalkTalk at the heart of Britain's fibre future by building a full fibre network, bringing faster, more reliable internet to millions of homes and businesses".

Infracapital will take an 80% slice of the new firm with a £400m investment while TalkTalk will own 20% after stumping up £100m.

The telecoms group has reduced its full-year earnings guidance and cut its dividend as it invests for the future.

Telecoms firm Talktalk is in talks with investment giant M&G Prudential over a £500m investment in rolling out fibre broadband to over three million United Kingdom households, it announced today. There will be a final dividend of 1.5p in FY 18, followed by an interim dividend of 1p and final dividend of 1.5p in FY 19. It expects to return to a normalised dividend of 7.50p when leverage is back below two times Ebitda. It paid 10.29 pence for its last financial year.

Similar to Vodafone's recent deal with CityFibre, TalkTalk and Infracapital said they planned to focus the new network on mid-sized towns and cities in the UK.

The company said the plan will build on a successful full fibre trial in York. The trial now reaches 14,000 homes - with plans to extend to a total of 54,000. TalkTalk will initially invest 100 million pounds into the project over five years.

Overwatch reveals new skins and map for Lunar New Year
However, certain abilities that provide mobility or invulnerability, such as Winston's Leap, will not cause the flag to drop. The Year of the Dog event is scheduled to begin on February 8 for PlayStation 4, Xbox One, and Windows PC.


CM Punk Betting Odds in Potential Mike Jackson Bout
Mike Jackson was actually who Mickey Gall defeated back in February 2016 for the right to face CM Punk in Punk's debut. Gall won the fight easily, taking just 45 seconds to tap out Jackson, who hasn't fought again since.


United Continental Holdings Inc (UAL) Shares Sold by First Mercantile Trust Co
Looking forward to the ratio analysis, the United Continental Holdings, Inc. 56 funds opened positions while 141 raised stakes. Gsa Cap Prtn Ltd Liability Partnership invested 0.03% of its portfolio in United Continental Holdings, Inc. (NYSE:UAL).


Barclays and Deutsche Bank are acting as joint global co-ordinators and joint bookrunners for the placing of new shares.

During the third quarter, TalkTalk saw double-digit growth in both the retail and wholesale customer bases.

The company added 37,000 customers in its third quarter, and forecast additions of 150,000 to 160,000 in the full year.

TalkTalk's sales for the quarter fell 1 per cent to £388m.

"We will continue to make significant cost reductions as we radically simplify the business in line with the strategy we set out a year ago", she added.

Jonathan Oxley, competition director at Ofcom, echoed the sentiments: "We welcome this latest announcement, which is another example of the real momentum behind full-fibre broadband".

"We anticipate revenue growth and strong earnings growth in the year ahead, as the benefits of a growing customer base and rigorous cost control begin to deliver the results this business is capable of".

The placing will be used to "strengthen the company's balance sheet, to support its continued customer growth and its investment in its long-term FTTP (fibre to the premises) plans", it said.

Recommended:



Popular

Microsoft to Bring Progressive Web Apps to Windows 10, Including Microsoft Store
New PCs will not ship with Windows 10, and Windows 10 Home in S Mode, Windows 10 Education in S Mode and Windows 10 Pro in S Mode. Microsoft has just released a new Windows 10 Spring Creators Update Preview build to Fast ring PC Insiders.

'Dragon Ball FighterZ' Now Part Of EVO 2018 Championship Lineup
Are you happy with the EVO 2018 lineup? Despite a high-profile release and generally positive reviews , Marvel vs. EVO 2018 will be held from August 3 to August 5 at the Mandalay Bay Resort and Casino in Las Vegas, Nevada.

$0.30 EPS Expected for KBR, Inc. (KBR); Nvidia (NVDA) Sentiment Is 1.3
Following the transaction, the director now owns 14,350 shares of the company's stock, valued at approximately $2,268,448. Parallax Volatility Advisers Lp owns 118,835 shares. 141,274 are owned by Piedmont Inv Advisors Limited Company.

Deadpool 2 director David Leitch eyed for Fast and Furious spin-off
The 2017 film landed him the job of the forthcoming Deadpool sequel after the film's original director, Tim Miller, walked out. The director had earlier helmed Deadpool 2 and is in talks to direct this film next according to reports in Variety .

New York Times Made More Than $1B From Subscriptions in 2017
Additionally, the Times' stock hasn't been worth this much since before the recession when many media outlets took major hits. TRADEMARK VIOLATION WARNING: This article was first posted by The Lincolnian Online and is owned by of The Lincolnian Online.

Salma Hayek: 'Harvey Weinstein threatened to break my knee caps'
In mid-December, Salma Hayek published an op-ed in the New York Times with the headline " Harvey Weinstein Is My Monster Too ". I went , 'Yes, no, yes, no, yes, no.

South Korean President to Meet Sister of North Korean Dictator
The U.S. official arrived in Seoul earlier in the day to attend Friday's opening of the Winter Olympic Games in PyeongChang. But Moon has seen the games as a way to renew relations with North Korea and has called them the "Olympic Games of peace".

AAA Says Drowsy Driving To Blame In Nearly 10 Percent Of Accidents
Pulling into a rest stop and taking a quick catnap - at least 20 minutes, but no more than 30 minutes - can help keep you alert. It's something that most drivers are guilty of, and now a study says it causes more crashes than originally anticipated.

Former Manchester United star Patrice Evra joins Hammers on free transfer
Former French defender Patrice Evra has joined West-ham United on a short-term contract to mark his return to English football. West Ham chairman David Sullivan rubber stamped the deal despite insisting his days of signing older players were over.

General Growth Properties, Inc (GGP), The Interpublic Group of Companies, Inc. (IPG)
The firm operates in three divisions: Federal Family Education Loan Program Loans, Private Education Loans, and Business Services. The shares of the company (IPG) staged the smart recovery as has roared back some 16.39% after stumbling to its new 52-weeks low.