Shares in TalkTalk soared 7.22 percent on Tuesday after the group a growth in revenue by over four percent in the quarter to 30 June.
The telecoms firm revealed an 80,000 growth in its broadband customer base and now has 2.1 million customers on its fixed low-price plans, which is up from two million at the end of March.
“We are pleased to have delivered strong customer and headline revenue growth in the first quarter and we remain firmly on track to deliver at least 150,000 net adds this financial year,” said Tristia Harrison, the group’s chief executive.
“After resetting the business last year, we are now a much simpler, lower-cost business. As our strategy to be the UK’s leading value provider of fixed connectivity continues to deliver, we are on course to report headline revenue growth, stable ARPU and a 15 percent year-on-year increase in Headline EBITDA. Alongside the core business we continue to make good progress on our plans for full fibre,” Harrison added.
Neil Wilson of markets.com said: “All this is broadly in line but the real focus is tomorrow’s AGM and what investors will say about the £200 million rights issue earlier this year. We’re also eyeing the potential sale of the business and with shares still at multi-year lows the appeal of a growing subscriber base is important, albeit at the expense of margins.”
Shares in TalkTalk (LON: TALK) are currently trading up 6.71 percent at 117.30 (1038GMT)