UK's Telecom Plus FY26 revenue beats estimates on customer growth; announces buyback

Telecom Plus

Today 07:11

Overview
UK household services provider's FY26 revenue rose 5.6%, beating analyst expectations
Adjusted pre-tax profit beat estimates; adjusted EPS missed analyst expectations
Company announced £40 mln share buyback as part of total shareholder distribution

Outlook
Telecom Plus expects FY27 adjusted profit before tax of £80m-£90m, down from FY26
Company targets adjusted profit before tax of c.£175m and ROCE above 30% by FY31
Company plans to double multiservice customers to over 1 mln by FY31

Result Drivers
CUSTOMER GROWTH - Revenue and profit growth driven by higher customer numbers, including organic growth and acquisition of broadband customers from TalkTalk
COMPETITIVE PRESSURE - Organic service growth lagged customer growth due to strong competition in energy and broadband and slower recovery in insurance services
PARTNER CHANNEL - Increased Partner numbers supported customer acquisition and growth

Company press release: ID:nRSW2861Ja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Beat
GBP 1.94 bln
GBP 1.92 bln (5 Analysts)
FY Adjusted Revenue
 
GBP 1.94 bln
 
FY Adjusted EPS
Miss
GBP 1.23
GBP 1.24 (5 Analysts)
FY Adjusted Pretax Profit
Beat
GBP 132.20 mln
GBP 129.59 mln (5 Analysts)
FY Basic EPS
 
GBP 1.01
 
FY Dividend
 
GBP 0.12
 
FY Pretax Profit
 
GBP 113 mln

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)