TalkTalk’s Salford move pays dividends
TalkTalk has released its preliminary results today and says that the move of its offices to Salford has led to a more “efficient operating model” and saved costs.
The company reported a statutory operating profit of £47m (FY18: £44m loss) and a statutory loss before tax of £5m (FY18: £100m loss). That comes after a £42m investment associated with reorganising the business - including the move to the Soapworks.
"Today's results show that two years after re-setting TalkTalk, the fundamentals of the business are much stronger. We have grown our customer base in a disciplined way, accelerated Fibre take-up, and reduced costs. This is translating to revenue growth and a c.17% increase in Headline EBITDA,” explained Tristia Harrison, Chief Executive of TalkTalk.
“Looking forward the business will continue with the same plan, focused on accelerating Fibre, reducing costs and simplifying the business.
“Having re-structured the customer base to reduce the difference between our front and back book pricing, the business is also well placed to benefit from imminent regulatory changes related to fairer pricing. These trends, coupled with ongoing cost reductions including our move to one Salford campus, mean we are confident in delivering strong Headline EBITDA growth both next year and over the medium term."
The Salford Soapworks site is a consolidation of its offices in Irlam and Warrington. By January 2020, it will become the company’s headquarters, as the “vast majority” of its London roles will move to the North West.
It said that the move would incur costs of around £30m, but it expects to make annual savings of around £25m-£30m.