Not agreeing with their view... but from Citywire:
Jefferies predicts TalkTalk dividend cut
Jefferies is disappointed by the lack of progress at TalkTalk (TALK) and expects a dividend cut next year.
Analyst Jerry Dellis reiterated his underperform recommendation and reduced the target price from 125p to 95p. The shares fell 11.2% to 137.2p yesterday.
Dellis downgraded the stock to underperform in February 2015 and he said not much had improved since then.
New tariffs are not delivering churn reduction as hoped, diluting earnings/free cashflow growth prospects, he said.
We remain heavily below consensus and expect TalkTalk to miss earnings guidance.
He added that bond covenants threaten dividend capacity and that a -40% dividend per share cut next year is the minimum requirement. "
Whether rumours are correct or not, I don't think the foray into Mobile has been or will be successful for Talk Talk under the current model. MVNO Mobile is loss making and the thin (no network) MVNO deal they have with Vodafone doesn't look particularly good. They'd do better to stick to fibre/copper broadband. Although if they concentrated on mobile broadband, rather than handsets and voice, then there may be legs there, IF they can get the deal right with Voda or another network operator.
Another one @ 7.20 am to 8am ( follow on offer ?? ).... Barclays downgraded to sell at 5am according to Cornhill .
Share price down to 203p @ open .... Large share holder , might have Barclays connection , might be Director..... Say Cornhill no one knows ... Lol
" IT WASN'T A RECOMMENDATION " ........... No just a rip off .
"Elsewhere in London, TalkTalk Telecom is exploring an exit from its mobile operations, after opening talks with other providers over the future of the business, the Financial Times reported Tuesday. TalkTalk has had discussions with rivals Vodafone Group, O2 and Virgin Media, with a view to striking a deal in the coming weeks for the unit, which has almost 1.0 million customers, according to the FT. The move is a key part of a strategy by TalkTalks new management, led by Executive Chairman Charles Dunstone and Chief Executive Tristia Harrison, to overhaul the companys operations and focus on fixed-line broadband, as it returns to its roots as a budget internet provider." By Daniel Ruiz; [email protected]
I have a feel that this is going to be a mistake. So much communication is done wireless these days that many will question the need for wires. In France this summer I saw an Orange Airbox which uses a SIM to provide a mobile broadband router whereever you are. Seemed to work OK.
Personally, this sell-off will not be great for me. I am a TT customer getting my landline, broadband and TV from them. As part of my package I get a "free" £0 per month mobile service which despite its modest call and data allowances and lack of 4G does me fine. As a result of the ending of the mobile service I will be checking whether my land line and broadband services are still competitive.
Switch to Plusnet for the broadband. Its cheaper and currently you will get a £50 Amazon voucher for your trouble.
I switched primarily because they have a very good rating for Customer service. TalkTalk is appalling.
TALKTALK are hiking up prices for customers, with price rises going to kick into effect in a few weeks time.
TalkTalk customers will see the price for their monthly bill rise, with price increases starting to come into effect from August 1.
The telecomms firm has revealed that customers on non-fixed packages will be hit by the increase with some customers their yearly bill rise by £21.
In total 400,000 TalkTalk customers will be affected by the price increase, according to The Sun.
TalkTalk customers who are on a Fixed Low Price Plan will not be affected by the price change.
Those who have signed up or renewed their broadband with TalkTalk since October last year will be on this plan and are not affected by the increase.
A TalkTalk spokesperson said: Changing our packages and pricing is never a decision we take lightly but were committed to bringing our customers the best value products and services.
Weve been investing millions in improving our unlimited broadband network, making our TV service faster and simpler to use, and introducing industry-leading security services and calling features which we provide as standard.
Whilst making such improvements mean that some prices will increase, were determined to put our customers first and TalkTalk customers continue to make a saving of up to £333 in comparison to BT, Sky and Virgin Media.
Hannah Maundrell, Editor in Chief of Money.co.uk, advised TalkTalk customers to check whether they are still getting a good deal from the provider.
She said: TalkTalk are hiking prices for loads of customers next month so checking youre still getting a good deal is an absolute must.
The chance is you could save a bundle even if you dont want to switch.
It pays to be brave as TalkTalk may be receptive to haggling especially if you threaten to leave.
Its really as simple as giving them a call and asking them how low they are willing to go to keep you as a customer.
For the best results do your research first; know what you would pay for your package as a new customer, check what the same deal would cost elsewhere and look at alternatives.
Of course, its also worth checking whether youre actually using all of the data and minutes youre paying for.
If youre one of the people it hits make sure you do something about it.
CALL CHARGES INCREASE
Standard call rates to UK land lines and mobiles (package name) - previous price: 12.5p per minute, new price: 13.5p per minute, starting from: August 1 2017.
Standard connection charge (package name) - previous price: 18p per call, 20p per call, starting from: August 1 2017.
Premium number access charge (package name) - previous price: 7.5p per minute, new price: 10.5p per minute, starting from: August 1 2017.
PACKAGE CHARGES INCREASE
Simply Broadband (package name) - previous price: £27.95, new price: £29.70, starting from: August 1 2017.
Simply Broadband with Fibre Medium (package name) - previous price: £37.95, new price: £39.70, starting from: August 1 2017.
Simply Broadband with Fibre Large (package name) - previous price: £42.95, new price: £44.70, starting from: August 1 2017.
Essentials Broadband (package name) - previous price: £30.45, new price: £32.20, starting from: August 1 2017.
Essentials Broadband with Fibre Medium (package name) - previous price: £40.45, new price: £42.20, starting from: August 1 2017.
Essentials Broadband with Fibre Large (package name) - previous price: £45.45, new price: £47.20, starting from: August 1 2017.
Shares in telecoms operator TalkTalk are a bargain, analysts said, after a hack last year saw the stock price plummet.
Deutsche Bank rated it a buy, citing its affordability as well as forthcoming opportunities in the sector, such as improved service from BTs broadband wholesaler, Openreach, and new access to its infrastructure.
Analysts said: Management is now more focused on profitability than growth, rather than both.
I dont think they will get anywhere near 140p unless the market has a considerable sell off with Charles Dunston back at the helm i see value here and a good long term recovery play
"Berenberg downgraded its stance on TalkTalk to 'sell' from 'hold' and slashed the price target to 140p from 224p saying the company has a mountain to climb to get back to sustainable profit growth.
The bank said TalkTalk ranked ninth out of nine in its consumer broadband survey, scoring poorly for churn risk, network quality and customer service, value-for-money and customer endorsements. In its mobile survey, the group ranked seventh out of 10, but still scored poorly on network quality, customer service, customer endorsements and Ofcom complaints.
"The results suggest that TalkTalk faces significant challenges to bring down churn on a sustainable basis," Berenberg said.
The bank said its survey results suggest TalkTalk will face cost risk as it tries to bring down churn on a sustainable basis. It also showed the company is not a "go-to" destination for other operators churning customers, a status that will be difficult and costly to change."
Ultimately where can such a business go? Isn't it true to say it's actually got no substance other than a service layer over and above an existing network provider? That begs the question, why don't the big boys just take the market share from them and edge them out through price mechanisms??
That said, Dunstone has achieved greatness before and knows what he's doing. Given the probable answer to my question is, "elephants can't dance", then perhaps it's a good buy?
This is a good article that points out that it was not all about the dividend cut. It was a combination of higher debt and lower earnings than the City forecast, the dividend cut was the cherry on top. It's not a kitchen sink job but it certainly looks like Sir Charles has cleared the decks. Could be a reasonable entry point if the business can create some forward momentum. The dividend is still respectable.
TalkTalk was under pressure following a press report over the weekend suggesting it will cut its dividend in its annual results on Wednesday. The Telegraph said city analysts have speculated that almost half of the company's dividend could be sacrificed as chairman Charles Dunstone looks to bring debt under control.
Her ownership of the 1998 Cheltenham Gold Cup winner Cool Dawn means that this column bows to no one in its admiration for Baroness Harding of Winscombe. But her departure from the chief executives position at TalkTalk could just be the catalyst that finally gets the shares to raise a gallop.
Last years security breach damaged the firms reputation and therefore its operational performance, as shown by the net loss of 42,000 customers in the third quarter. Meanwhile the broadband and telecoms market remains brutally competitive, a fact reaffirmed by a 3pc year-on-year drop in average revenue per user.
This all explains why the shares have done poorly, especially as the dividend is no longer covered by earnings and a cut is distinctly possible a yield of 8.9pc really does fall into the too-good-to-be-true category.
Yet a cut is already expected, using stockbrokers research as a guide, and the yield should still be decent even after any reduction.
In addition, healthy cashflow means debt (and therefore risk) is coming down, while operational initiatives mean TalkTalk could be poised to surprise, relative to what are now low expectations, as the firm simplifies its prices, rolls out superfast broadband and gets ready to launch 4G mobile services.
Throw in the appointment as executive chairman of Sir Charles Dunstone, a 30pc shareholder and founder of the business from his Carphone Warehouse days, and things could really get interesting.
He has never been afraid to buy or sell assets and it may be only a matter of time before analysts start to ponder whether TalkTalk is a bid candidate, although any such activity is not core to the investment case.
We rated the shares only a hold when we covered them in November at 200p, but following the share price fall and in light of the positive developments we now upgrade our stance to buy.
Dunstone takes charge at Talk Talk as Harding steps down after 7 years
09:00 01 Feb 2017
The surprise change at the top came as the FTSE 250-listed firm also reported a 5.4% drop in third-quarter net revenues to £435mln, down from £459mln a year earlier.
Dido Harding, chief executive of Talktalk Telecom Group PLC (LON:TALK) is to step down in May after seven years in charge, with founder Charles Dunstone becoming the broadband groups executive chairman and, as a result, quitting his post as non-executive chairman of Dixons Carphone PLC (LON:DC.).
The surprise change at the top came as the FTSE 250-listed firm also reported a 5.4% drop in third-quarter net revenues to £435mln, down from £459mln a year earlier.
Harding, a life peer and a a vocal critic of industry leader BT Group PLC (LON:BT.) said that after seven years, it was time to "start handing over the reins at TalkTalk and focus more on my activities in public service".
Dunstone will be replaced at Dixons Carphone by Ian Livingston, the ennobled former chief executive of telecommunications giant BT and deputy chairman at the merged, FTSE 100-listed electricals and mpbiles phones retailer since 2015.
At Talktalk,Tristia Harrison, currently managing director of TalkTalk Consumer will succeed Harding as CEO and Charles Bligh, currently managing director of TalkTalk Business will become chief operating officer.
Dunstone said: I'm excited at the prospect of spending more time on TalkTalk, beginning with delivering another successful performance this year; and I am delighted to announce the promotion of Tristia and Charles to help me lead the business so that we continue to deliver successfully for our customers and our shareholders."
Talk Talk shares topped the FTSE 250 leader board in early trading, jumping over 6% higher, up 10.0p to 166.5p.
Independent retail analyst Nick Bubb said: "Well, 'once a mobile phone man always a mobile phone man', as they say, so its perhaps no great surprise that Charles Dunstone wants to return to his roots by getting more involved with TalkTalk, but investors in Dixons Carphone will be wondering what his move says about the prospects for the business 3 years on from the merger "
Dixons Carphone was the biggest FTSE 100 faller, with its shares down down almost 1% or 2.7p at 313.2p.
But analysts at Liberum said: "While todays announcement is unexpected, we do not see anything untoward."
In a separate trading update today, TalkTalk which was the victim of a major cyber hacking attack in 2015 - said a high level of re-contracting and re-pricing of its legacy tariffs had an impact on its revenue in the third-quarter.
But the firm said an additional 81,000 customers have re-contracted during the first 4 weeks of January, of which over 75% have re-contracted on its newly introduced 24 month plan.
The group added that it expects to deliver positive on-net net adds and lower churn in Q4, with a stable and higher quality Retail base driving revenue growth during FY18.
TalkTalk maintained its guidance for full-year underlying earnings (EBITDA) for 2017 and reiterated that its final dividend will be flat year-on-year at 10.58p.
TALKTALK SEES STRONG LEVEL OF RE-CONTRACTING, FULL YEAR IN LINE WITH GUIDANCE
(ShareCast News) - Alongside departure of chief executive Dido Harding, telecoms group TalkTalk reported that revenue and earnings for the current financial year would be affected by strong levels of customer re-contracting, but will be in line with previous guidance.
The FTSE 250 company, which will see current chairman Charles Dunstone take on executive responsibilities amid the major boardroom reshuffle, expects the final divid
"Written: Tue, 24th January 2017 - 23:55British Telecom & TalkTalkThis pair of paragons of communication excellence managed to clutter up our email. We've a couple of "smarty pants" prior commentaries against each, one from July 2016 giving a ..."
" British Telecom (LSE:BT.A) & TALK TALK (LSE:TALK) This pair of paragons of communication excellence managed to clutter up our email. We've a couple of "smartypants"Â prior commentaries against each, one from July 2016 giving a target of 309 ..."
SOURCE: Choose.net from quarterly results, customer numbers in millions.
Plusnet - One of the biggest small ISPs in the UK, they're actually owned by the BT Group, although they continue to operate in the main as a separate business. In turn, they provide the network for John Lewis Broadband
Delighted to read Odey who looks after £6.5billion of investments, has suffered a 48 per cent fall in the value of his flagship fund. One of the main shorters of TalkTalk. People like this should be banned from shorting
On Thursday analysts at Credit Suisse reiterated TalkTalk Telecom Group PLCs (LON:TALK) shares as Outperform in a research note issued to investors.
Following Credit Suisses latest price target of 260 on the business this highlights that the broker now believes there is an increase of 63.11% from TalkTalk Telecom Group PLCs current share price of 159.4.
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