TalkTalk warned the markets of a rocky year ahead after predicting profits will drop in its next financial year.
Announcing its full-year results this morning, new CEO Tristia Harrison said headline EBITDA grew 17 percent year-on-year to £304 million.
Group sales were down three percent to £1.78 billion, with on-net revenues down 4.1 percent due to higher churn, fewer connections, a fall in ARPU, and a push to move customers onto its Fixed Low Price Plans.
There was better news at its corporate arm, with sales up 3.4 percent to £397 million, driven by a 31 percent surge in data revenues.
However, the total customer base declined by 1.2 percent to 3.95 million in the 12 months to the end of March.
TalkTalk experienced a 178,000 fall in retail customers, but this was partially offset by a growth in its wholesale base of 129,000.
Harrison, who replaced Dido Harding this month, outlined her priorities for the year ahead, including a promise to add to the 993,000 customers using its new Fixed Low Price Plans.
The CEO said these would lock customers into more certain contracts, reduce churn and increase customer satisfaction.
Investments in customer experience would also pay off, according to Harrison, delivering consistency of service, joining and repairing, as ensuring at home connectivity.
She said these investments would be included as part of its overall capex spend of six percent of revenues for the year ahead.
This cash would also pay for equipping more than 1,000 exchanges with 10Gig backhaul and further FTTC penetration.
Harrison said: “The last 12 months have seen the business lay down solid foundations from which to drive sustainable base and revenue growth in both our Retail and B2B businesses.
“This will allow us to build upon our core strength as a value for money fixed line connectivity provider as we focus on delivering growth, improving our customers’ experience, investing in and future-proofing our fixed network, and driving operational efficiencies across the business, whilst being more disciplined and smarter with our assets.”
However, she warned higher acquisition costs and marketing spend would mean the 2018 financial year would only deliver EBITDA of between £270-£300 million.