Telecom Plus (TEP) investor relations material

Executive summary

• Achieved record year in FY 2025 with 15% customer growth, reaching 1.16m customers, and all-time highs in services, profits, and shareholder returns.

• Growth driven by unique multiservice proposition, Partner referral model, and structural cost advantage.

• Launched cross-sell partnership with TalkTalk, acquiring 95,000 broadband and landline customers, with further 70,000 to transfer in FY26.

• Expanded multi-service offerings, relaunched insurance products, and enhanced customer loyalty programs.

• On track for medium-term target of 2m customers, targeting 10–15% annual net customer growth and higher EBITDA per customer.

Financial highlights

• Adjusted profit before tax rose 8% to £126m, with gross profit up 0.8% to £358.1m and margin at 19.5%.

• Revenue declined 10% to £1,838m due to lower energy prices, but profit growth was driven by customer expansion.

• Admin costs decreased by 5% year-over-year, reflecting efficiency gains and lower customer service costs.

• Adjusted earnings per share increased 9% to 119p.

• Full-year dividend increased 13% to 94p, maintaining a payout of 80–90% of adjusted net income.

Outlook and guidance

• FY26 guidance: ~15% total customer growth, including ~70k broadband customers from TalkTalk, with low double-digit organic growth.

• Adjusted profit before tax expected between £132m and £138m; dividend to rise in line with adjusted net profit.

• Medium-term target of 2m customers, with EBITDA per customer expected to rise from mid-£120s to £150.

• Continued market share gains anticipated across all services, with new service launches and partnership opportunities.

• Focus on expanding EBITDA per customer and adding new subscription-style services.