Telecom Plus (TEP) Trading Update summary

Financial performance and guidance

• Achieved record customer growth of 15%, reaching 1,163,608 customers, with over 12.5% organic growth excluding acquisitions.

• Full year adjusted pre-tax profit expected between £124m and £128m, in line with guidance.

• Dividend for FY25 anticipated to rise by just over 13% to 94p per share.

• Year-end leverage ratio projected at 1.0x net debt/adjusted EBITDA, reflecting strong cash generation.

Operational highlights

• Acquired around 25,000 fixed-line/broadband customers from TalkTalk as part of a cross-sell trial partnership.

• Total services provided increased by approximately 8.5% to 3,392,593.

• Partner network surpassed 70,000, supporting customer acquisition and upselling.

• Awarded "Which? Recommended Provider" status for both Energy and Broadband, a first in the UK.

Strategic initiatives and outlook

• Cross-sell trial with TalkTalk involves transferring up to 95,000 customers, with potential for further growth if successful.

• Relaunch of insurance products and upselling to new customers expected to accelerate service growth.

• Maintains medium-term target to reach two million customers, supported by a resilient multiservice platform.

• Business model considered largely immune to macroeconomic volatility, benefiting from demand for cost savings and additional income.