TalkTalk Advances on Raised Forecast for Broadband: London Mover
Stock Chart for TalkTalk Telecom Group PLC (TALK)
TalkTalk Telecom Group Plc, the U.K. broadband provider split off from Carphone Warehouse Plc, advanced the most in two years as the company raised its earnings forecast after selling more expensive services.
Full-year earnings per share will be 17 pence to 17.5 pence, compared with a previous forecast of 15.5 pence to 16.5 pence, the London-based company said in a statement. Average revenue per broadband user climbed to 25.3 pounds ($40) in the third quarter ended Dec. 31 from 24.7 pounds in the previous three months, and cost savings are ahead of schedule, it said.
The improved outlook was helped by TalkTalk selling more expensive packages to subscribers and the earlier delivery of savings, analysts at Jefferies including Jerry Dellis wrote in a note today. Jefferies has a “buy” recommendation on the stock, with a 152-pence price target.
Third-quarter sales were 422 million pounds, compared with an average estimate of 420.8 million pounds in a Bloomberg survey of analysts.
The full-year margin for earnings before interest, taxes, depreciation and amortization will be 18 percent to 19 percent, compared with a previous prediction of 17 percent to 18 percent, TalkTalk said.
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