PRU Prudential Plc

By Adria Calatayud

TalkTalk Telecom Group PLC (TALK.LN) said Wednesday that first-half pretax loss narrowed thanks to lower costs and that it isn't proceeding with its fiber partnership with Prudential PLC's (PRU.LN) Infracapital.

TalkTalk said it has launched a new company, FibreNation, under an independent chair to accelerate its fiber-rollout plans with the target of reaching three million homes and businesses in the U.K. The company said it remains in discussions with potential partners, including Infracapital, to develop a capital structure for FibreNation.

In February, TalkTalk and Infracapital reached a preliminary agreement for the launch of a joint venture to deploy fiber infrastructure. Under thr agreement, Infracapital would have provided 80% of the funding and TalkTalk the remaining 20%.

The U.K. telecommunications company posted a pretax loss of 4 million pounds ($5.1 million) for the half year ended Sept. 30 compared with a loss of GBP95 million in the year-earlier period.

Revenue edged lower to GBP822 million in the first half of fiscal 2019 from GBP827 million a year before, TalkTalk said.

The company added 104,000 customers in the first half, with net customer gains of 24,000 in the second quarter, it said.

TalkTalk said it is moving its headquarters to Salford, England, from London.

For fiscal 2019 as a whole, the company said it expects headline revenue growth, around 150,000 net additions in broadband and headline earnings before interest, taxes, depreciation and amortization in line with expectations.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

November 21, 2018 03:13 ET (08:13 GMT)

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