Telecom Plus plc (TEP.L), on Tuesday, issued a trading update for its financial year ending 31 March 2025, and said it still expects full-year adjusted pre-tax profits to range between £124 million and £128 million, in line with previous guidance.
The company reported strong customer growth, with a 15% net increase, including around 25,000 fixed-line and broadband customers acquired from TalkTalk as part of a cross-sell trial partnership. Organic customer growth remained impressive at over 12.5%.
Also, the company noted that it maintains a robust balance sheet, with a projected year-end leverage ratio of about 1.0x net debt to adjusted EBITDA. Dividend expectations have been raised by over 13%, with the total dividend for FY25 set at 94p per share.
The company's customer acquisition strategy continues to thrive, leveraging its unique word-of-mouth marketing approach. Customer numbers reached 1,163,608, marking consistent double-digit percentage growth. UW anticipates further acceleration in service growth following the relaunch of its insurance products and cross-selling efforts targeting newly acquired TalkTalk customers.
In addition, the company has announced that it has reached an agreement with TalkTalk to initiate a cross-selling trial partnership. This partnership will involve the transition of about 95,000 TalkTalk fixed-line and broadband customers to UW for an undisclosed financial consideration. The objective is to effectively upsell additional utility services to these customers through Partner network. Notably, the initial transfer of 25,000 customers occurred during the fourth quarter of fiscal year 2025.
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