VOD Vodafone Group PLC

(Rewrites, adds detail.)

By Simon Zekaria and Olga Cotaga

LONDON--TalkTalk Telecom Group PLC (TALK.LN) on Wednesday said its first quarter revenue performance was flat year-over-year even as its customer base shrank, as the U.K. telecommunications group reiterated its fiscal 2017 guidance.

In a trading update, the provider of Internet broadband, phone and television services said corporate revenue rose 7.5% in the three months to June 30. Data revenue also grew by 39%, the company said. But voice revenue fell 31% and revenue from the group's own network was down 2%, the company added.

The broadband base had 9,000 fewer customers during the quarter, with mobile additions "strong" at 48,000 customers and 36,000 additional fiber-optic customers. The TV customer base was 23,000 lower in the quarter.

Telecom and media companies like TalkTalk are focused on generating higher income from customers loyal to a bundle of services and products, as well as those customers taking on higher-priced services.

TalkTalk said it expects to report earnings before interest, taxes, depreciation and amortization in the range of between 320 million pounds ($422 million) and GBP360 million for the fiscal year.

It also expects its revenue to grow "modestly" in the year.

Last year, the company was hit by a cyberattack which cost the company over $50 million and hit its yearly results.

TalkTalk said it is on track to migrate its mobile base from Vodafone Group PLC (VOD.LN) to Telefonica SA (TEF.MC) under a so-called mobile virtual network agreement in the second half of the year, it said.

At 0957 GMT, TalkTalk shares fell 1.4% to 220 pence.

Write to Simon Zekaria at simon.zekaria@wsj.com and Olga Cotaga at olga.cotaga@wsj.com

(END) Dow Jones Newswires

July 20, 2016 06:36 ET (10:36 GMT)

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