Full Year 2026 Telecom Plus PLC Earnings Call Transcript
Key Points
- Telecom Plus PLC (FRA:T8T) reported a 23% increase in total customers, including significant acquisitions from TalkTalk.
- The company achieved record profits and increased total cash distributions to shareholders, with a total dividend of 50p and a share buyback of GBP40 million.
- The multi-service proposition, bundling energy, broadband, mobile, and insurance, has been successful in retaining customers and enhancing customer lifetime value.
- The company has maintained a low net debt to EBITDA ratio of 0.9 times, indicating strong cash generation and financial stability.
- Telecom Plus PLC (FRA:T8T) was recognized as the first company to be Witch recommended for energy and broadband simultaneously, highlighting the strength of its customer proposition.
- Adjusted profit before tax was at the lower end of the guided range due to an unseasonably warm winter, which reduced household energy consumption.
- Organic service growth lagged behind customer growth, partly due to increased competition in the energy and broadband markets.
- The churn rate increased slightly to 14.2% during the period, reflecting competitive pressures.
- The bad debt charge increased to 2.1% of sales, attributed to elevated levels of customer non-payment from previously high energy prices.
- Insurance services continued to decline, with slower than expected recovery following an FCA review in FY25.
Good morning, everyone. Thank you for joining us today for the Telecom Plus full year results presentation for the year ending March 31, 2026. I'm Stuart Burnett, CEO, and with me is Nick Schoenfeld, CFO. And we're pleased to report another strong performance in FY26, with double-digit percentage organic customer growth, resulting in record profits and an increase in total cash distributions to shareholders. Now let's run through the key highlights of our performance.
We saw a 23% increase in total customers, including 193,000 broadband customers acquired from TalkTalk, with an underlying organic growth rate of just over 10%, which includes 14,500 TalkTalk customers who we upgraded and cross-sold. Our organic service growth of 7.6% lagged customer growth due to faster growth in single service customers. Resulting in organic services per customer declining, in part as a result of increased competition in the energy and broadband markets.
Adjusted profit before tax of GBP132 million, which at the lower end
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