Telecom Plus posts strong customer growth, tweaks payout policy as competition weighs on services

Telecom Plus ( (GB:TEP) ) has issued an announcement.

Telecom Plus reported another year of strong expansion for the period to 31 March 2026, with total customer numbers up 23.3% to 1.43 million, boosted by the acquisition of 193,000 broadband customers from TalkTalk and organic growth of 10.3%. The group now supplies 3.80 million services, but service growth lagged customer growth due to intense competition in energy and broadband and a slower-than-expected rebound in insurance, contributing to an expected adjusted pre-tax profit at the bottom of its £132m-£138m guidance range.

The company highlighted a robust balance sheet with leverage of about 1.0x net debt to adjusted EBITDA and unveiled a revised shareholder returns policy, maintaining an 80% payout of adjusted post-tax profit but splitting this between ordinary dividends and share buybacks or special dividends. Management stressed that cross-selling into the acquired TalkTalk base is progressing well, partner numbers have risen to 77,000, and the business remains focused on raising services per customer, reducing churn and growing contribution per customer as it targets expansion to two million UK households and seeks to maximise long-term shareholder value.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £2000.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Spark’s Take on TEP Stock

According to Spark, TipRanks’ AI Analyst, TEP is a Neutral.

Telecom Plus’s overall stock score reflects a mixed outlook. The most significant strength is the company’s strong customer growth and strategic expansion, which supports future growth prospects. However, the bearish technical indicators and revenue decline pose risks. The attractive valuation and high dividend yield provide a buffer, making it appealing for income-focused investors despite the current technical weakness.

To see Spark’s full report on TEP stock, click here.

More about Telecom Plus

Telecom Plus, which trades as Utility Warehouse, operates a UK multiservice utility platform bundling subscription-style household services including energy, broadband, mobile and insurance. Its model offers customers a single monthly bill, competitively priced utilities and high service levels, with customer acquisition driven through a national network of local partners and revenues characterised by recurring, predictable cash flows.

Average Trading Volume: 194,097

Technical Sentiment Signal: Buy

Current Market Cap: £1.14B

See more insights into TEP stock on TipRanks’ Stock Analysis page.