Telecom plus revenue rises 12.3% as company aims for 1m new customers by FY 2027

Telecom plus shares gained 2.2% to 1,808p in early morning trading on Tuesday following a reported 12.3% rise in revenue to £967.4 million against £861.2 million year-on-year.

The company noted an adjusted pre-tax profit climb of 10.3% to £61.9 million compared to £56.1 million and a statutory pre-tax profit increase of 8.5% to £47.2 million from £43.5 million.

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Telecom announced a 10.8% increase in customers to 729,000, equal to the last five years of growth combined, alongside improved customer retention levels as customers reportedly benefited from higher savings on their UW services.

The group also returned to a rational pricing environment after the permanent energy retail market reset.

The company mentioned continuing strong new customers levels in line with guidance of 20% net growth for the coming year, alongside a new medium-term goal to sign a minimum of 1,000,000 additional customers over the next four to five years.

Telecom added that its adjusted pre-tax profit for FY 2023 was projected to hit approximately £75 million, exceeding market expectations and enabling raised guidance including a dividend leap to at least 65p for the year ahead.

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“The business is performing extremely well, delivering record results ahead of expectations. Demand for the long term savings we offer remains high, and underlying organic customer growth is continuing at an annualised rate of around 20% in the new financial year,” said Telecom plus CEO Andrew Lindsay.

“It is now inevitable that energy prices will rise significantly again in October and are likely to remain high for the foreseeable future.” 

“Thanks to our multiservice proposition we expect to continue offering our customers the lowest energy prices in the country this winter, giving every household the opportunity to make significant savings at a time when they need them the most.”

Telecom confirmed an adjusted EPS jump of 10.1% to 63.2p against 57.4p the year before, with a statutory EPS rise of 8.7% to 45.1p compared to 41.5p. The group announced a FY dividend of 57p per share, remaining flat since the previous year.

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