The TalkTalk home phone and free broadband service looks to have got off to a flying start. According to the preliminary annual financial report of parent company Carphone Warehouse, 340,000 customers registered for free broadband for life in the first eight weeks to June 5.
Carphone Warehouse says that it is on schedule to have its own gear installed into 200 local exchanges by July when its free broadband service begins - the longer-term target is 1,000 by May 2007.
As a whole, the company saw revenue grow by 29.4 per cent to £3.04 billion during its 2006 financial year (ending March 2006). Profit before tax fell 11.9 per cent to £81 million but the board is still recommending that shareholders receive a final dividend that will boost their total take to about 40 per cent more than last year's level.
Next year is set to be hard, though, as our detailed HEXUS.headline pointed out back in April. The company is expecting to rack up losses during FY2007 of £50 million, largely as a result of investing £110 million in its headline strategy to become a major player in landline phones and broadband. But it's also be investing in mobile, too, having set up with Virgin group a joint venture Virgin Mobile company in France.
The company is promising a speedy return to profit. Its report echoes what was said at the unveiling of the free-for-life broadband service - that FY2008 should see profits of £30-£40 million, with a full return on its local-loop-unbundling investment the next year. More details of the Carphone Warehouse results can be found here.
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HEXUS.community - forum thread about this article
HEXUS.headline (April 12) - Carphone Warehouse reveals details of 'free' broadband - it's war!
Carphone Warehouse - FY2006 results
