Summary: TalkTalk Telecom Group PLC

Benefits from being the leading value carrier in the U.K., with limited competition from premium content providers. Strong position in wholesale broadband as the U.K.'s top supplier of wholesale and B2B2C broadband. Robust growth in the company's customer base underpinned by competitively priced FLPP plans. Short-term reduction in leverage supported by a reduction in exceptional items and lower fiber wholesale fees, as well as TalkTalk's commitment to reduce its leverage towards 2.0x net debt to EBITDA. Competes against significantly larger players BT, Sky, and Vodafone. Promotional pricing pressures likely to remain fierce as the U.K. broadband market matures and Vodafone tries to further grow its share. Reliance on Openreach for last mile connection as well as high restructuring and subscriber

...Key Strengths Key Risks + Benefits from being the leading value carrier in the U.K., with limited competition from premium content providers. + Strong position in wholesale broadband as the U.K.'s top supplier of wholesale and B2B2C broadband. + Robust growth in the company's customer base underpinned by competitively priced FLPP plans. + Short-term reduction in leverage supported by a reduction in exceptional items and lower fiber wholesale fees, as well as TalkTalk's commitment to reduce its leverage towards 2.0x net debt to EBITDA. + Competes against significantly larger players BT, Sky, and Vodafone. + Promotional pricing pressures likely to remain fierce as the U.K. broadband market matures and Vodafone tries to further grow its share. + Reliance on Openreach for last mile connection as well as high restructuring and subscriber acquisitions costs, which constrains EBITDA margins (10.2% in 2018). + Meaningful long-term deleveraging will likely be constrained by limited long term ARPU...

Summary