TALK LN

TalkTalk Telecom Group PLC

TMT


Presented:12/17/2013
Price:£2.91
Cap:$3.97B
Current Price:£0.97
Cap:$1.71B

Presented

Date12/17/2013
Price£2.91
Market Cap$3.97B
Ent Value$4.67B
P/E Ratio6419.23x
Book Value£0.31
Div YieldN/A
Shares O/S915.97M
Ave Daily Vol1,760,000
Short IntN/A

Current

Price£0.97
Market Cap$1.71B
TalkTalk Telecom Group PLC provides fixed line broadband, voice telephony, mobile, and television services to residential and business customers in the United Kingdom. The company offers its services under the TalkTalk, AOL Broadband, and TalkTalk Business brands names. The company was founded in 2002 and is based in London, the United Kingdom.

Highlights

The presenter is short shares of TalkTalk Telecom Group (TALK), the UK-based reseller of broadband and voice services that originated as part of The Carphone Warehouse Group. In 2006 BT’s local loop was unbundled and resellers began selling at 50% below retail. With TALK priced 20% below BT on DSL, the business took off. Since 2007 BT has lost ~1 million subscribers per-year, with TALK being a major beneficiary. However, 35% of BT’s existing subscriber base is on fiber, which is not regulated. When this number jumps to 50% in 2014, as is expected, TALK’s 20% undercut may disappear.

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Idea Discussion

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