Key points

  • Group revenue1 declined by 5%
  • Group EBITDA1 up by 2%
  • Hull & East Yorkshire continues to perform well and in line with market expectations
    • Full-fibre deployment remains on target to be available to 100% of addressable market by March 2019
    • Percentage of broadband customers taking full-fibre continues to increase
  • Poor performance in national business segments driven by:
    • Revenue decline in NNS, due to continuing churn
    • Broadly flat revenue in Enterprise reflecting disappointing order intake performance
  • NNS performance results in non-cash exceptional impairment of goodwill of £32.2 million
  • Increase in net debt to £108.5 million (1.6x net debt: EBITDA), driven by:
    • Capital investment in Hull & East Yorkshire segment
    • Material working capital outflow, due to insourcing a managed service arrangement and unwind of deferred revenue balances in Enterprise
  • Interim dividend of 1.00p (2017: 2.00p), reflecting Board’s previously announced decision to revise full year dividend commitment to a minimum of 3.00p per share

View the Interim results 2018/19 release here.