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TalkTalk: YouView ready to go

February 7, 2012

TalkTalk admitted it had lost a net 60,000 customers in the third quarter but had increased the ARPU which rose from £24.70 to £25.30 as consumers switched to premium products.

Broadband revenue was up by 1.6 per cent quarter to £312 million, “we are being more successful in attracting and retaining more profitable customers,” said Dido Harding, TalkTalk chief executive.

However, total revenues for the three months to December 31 fell by 5 per cent year on year to £422m, following declines of 5 per cent and 4.7 per cent in the previous two quarters.

TalkTalk expects to receive a boost from YouView, the OTT service backed by the BBC, ITV, BT and others, that is due to be introduced this year.

However, some analysts think YouView will have downsides for TalkTalk posing executional risks (the company has been fined and criticised for poor service) and could reduce margins in the near term.

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