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TalkTalk Telecom FY Headline EBITDA Up 9.7% On Pre-IFRS 16 Basis

TalkTalk Telecom Group plc. (TALK.L) reported that its Headline EBITDA for the year ended 31 March 2020 grew 9.7% to 260 million pounds on pre-IFRS 16 basis from last year's 237 million pounds, driven by lower cost to serve due to a reduction in faults and contact centres calls as a result of an increase in more reliable Fibre connections.

Due to the disposal of Fibre Assets Business, resulting in a profit on disposal of 127 million pounds, annual statutory profit before tax was 131 million pounds or 146 million pounds on pre-IFRS 16 basis, compared to a loss of 5 million pounds on pre-IFRS 16 basis in the prior year.

Statutory revenue declined by 3.9% mainly due to declining Carrier revenue and lower non-Headline MVNO revenue as we wind down this business.

The Board has recommended a final dividend of 1.50 pence, same with last year.

Looking ahead to fiscal year 2021, the company said it remains in a robust operational and financial position, with levers in its control to manage costs further, whilst having not required any furlough or government assistance.

The company said it will not provide formal guidance, due to the uncertainties of COVID-19 pandemic. But, based on current trends, the company expects to deliver stable Headline EBITDA year on year, after assuming a about 15 million pounds COVID-19 impact.

The company also expects strong cash conversion and will therefore be maintaining the dividend at 2.5 pence.

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