TalkTalk profits jump
November 15, 2016
UK telco TalkTalk said recovery efforts after last year’s cyber attack were paying off as it posted a huge jump in half-year profits. The firm pointed to a “relentless focus” on retaining existing customers for helping pre-tax profits rise to £46 million (€52.9m) for the six months to September 30th, up from £14 million a year earlier, while underlying earnings leapt 44 per cent higher to £130 million.
It also expects “materially” higher profits for the full year.
But TalkTalk admitted it was still feeling the impact of the hack after losing 98,000 retail broadband customers in the first half, although this was largely offset by 69,000 new wholesale customers signing up. The company also revealed it lost 56,000 TV customers in H1,
Dido Harding, Chief Executive of TalkTalk commented: “We have delivered an excellent uplift in first half profits and expect to deliver materially higher full year profits than last year. One year on from the cyber-attack, we have maintained a relentless focus on looking after our existing customers and keeping up the pace across a wide range of operational improvements to make TalkTalk simpler and better for customers. As a result we have seen significant year-on-year improvements in churn and customer satisfaction.”
She continued: “We are delighted with the initial response to our Fixed Low Price Plans, which offer customers simple, affordable and fair prices in an increasingly confusing market place. By allowing our existing customers to switch to these new plans, we are delivering a value for money proposition to our customer base that is genuinely unique in the market, and are laying the foundations for a fundamental transformation of the TalkTalk brand. This combined with our ongoing focus on Making TalkTalk Simpler will drive a return to retail subscriber and revenue growth in FY18, supporting our confidence in the longer term prospects for the business”.