Talktalk laid low by profit alert as new JV rolled out

Shares in Talktalk came under pressure yesterday after the telecoms group warned over profits while unveiling plans to roll out full fibre broadband to three million homes and businesses through a joint venture with Infracapital.

The firm trimmed its annual earnings outlook to between £230 million and £245m from £270m to £300m.

Talktalk said £1.5 billion would be invested in the new broadband company, helping to ramp up competition and shift Britain’s digital infrastructure in line with major European nations.

Infracapital, an infrastructure investment arm of M&G Prudential, will take an 80 per cent slice of the new firm and make an initial £400m investment, with Talktalk owning 20 per cent and stumping up £100m. The move comes as Talktalk tapped investors for £200m to shore up its balance sheet, help drive customer growth and underpin its fibre investment plans. However, the firm said it would have to cut its dividend to 2.5p.