TalkTalk Group’s preliminary FY2013/14 financial results have revealed impressive growth for TalkTalk Business, the Group’s B2B division. Overall Corporate revenues for the year grew 5.6 per cent year on year, a key driver of which was a 38% increase in revenue from business data products. This makes TalkTalk Business one of the fastest growing B2B telecom businesses in the UK.
TalkTalk Business’ competitively-priced data products performed well over the year, reflected in a string of high-profile customer wins in the direct business, including Selfridges, Fullers and Iceland Group. Notably, the growth of these data products more than compensates for the shift in customer demand away from legacy voice products, and demonstrates TalkTalk Business is well-positioned to continue to grow market share over the coming years.
Underpinning the TalkTalk Business portfolio is a network of over 3,000 Ethernet-enabled exchanges covering 95 per cent of the UK. By leveraging this Ethernet capability, along with the scale and reach of the Group’s network, TalkTalk Business is able to provide businesses with a range of all-IP solutions at competitive prices – regardless of their size.
In addition to its well-performing direct business, the provider’s already strong Partner channel also continued to grow throughout FY13/14. A five-year contract with Fujitsu, for example, led to the migration of 103,000 Post Office customers onto the TalkTalk network in Q3. Partnerships such as these are testament to TalkTalk Business’ ability to partner with the channel, where partners demand quality, flexibility and sustained margins, without undue complexity.
“Three quarters of successive growth is a wonderful achievement and demand for data shows no sign of letting up”, said Charles Bligh, managing director of TalkTalk Business. “As we continue to grow, our strategy is clear. We will continue to provide our customers and partners with simple, value for money products, that leverage the scale and capability of the TalkTalk network, while simultaneously developing new and innovative products that deliver both value for money for our customers and long-term growth for the business. ”
Major direct contracts in FY13/14:
- Iceland Group: MPLS network covering 840 sites for a 6-year term
- DX Group: MPLS network covering 72 sites for a 5-year term
- Selfridges: MPLS network covering 12 sites for a 3-year term
- Fullers: MPLS network covering 200 sites for a 3-year term
- Hutchison 3G: Wide Area Network (Retail Estate) plus WiFi covering 360 sites for a 3-year-term