TalkTalk suffers 70,000 customer defections after service issues

Telecoms firm TalkTalk lost 70,000 broadband customers over the six months to the end of September, during which it was fined by Ofcom for incorrectly billing customers and suffered a high level of complaints.

TalkTalk: 70,000 broadband customers defect in six-month period
TalkTalk: 70,000 broadband customers defect in six-month period

TalkTalk chief executive Dido Harding claimed today (15 November) that the company was providing a better customer experience, as demonstrated by a reduction in calls to call centres and an increase in customer queries being resolved first time.

Harding's comments come three months after the TalkTalk Group was fined £3m by Ofcom for incorrectly billing tens of thousands of consumers for services they did not receive.

TalkTalk was revealed as being the most complained about provider in April by Ofcom, after receiving 1.78 complaints per 1,000 customers for its fixed-line service and 1.27 complaints per 1,000 customers for its broadband service.

The provider's customer experience push may not yet have changed perceptions in the minds of the public.

Harding said: "There is a lag between these [customer experience] initiatives and improvements in customer numbers, but we are confident that the effects will soon become more apparent."

The loss of customers helped send TalkTalk's revenue for the six months to 30 September down 4.8% year on year to £844m.

However, average revenue per user (ARPU) was unchanged at £24.70 and the company became more profitable after convincing 159,000 customers to move to its own network.

Pre-tax profits rose from £17m to £41m, in part due to a significant reduction in cost of sales from £450m to £409m.

Follow Matthew Chapman on Twitter @mattchapmanuk

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Pre-tax profits fall by 90% at UTV

Pre-tax profits fall by 90% at UTV

UTV Media has reported a fall in pre-tax profits of 90 per cent for the first half of 2015.

Share
Why publishers' brand strategy must be fluid and flexible

Why publishers' brand strategy must be fluid and flexible

Jerry Wright, the chief executive of ABC, warns not to place too much faith in false dawns or recent sunsets in the publishing sector.

Share
The trillion dollar question: can Facebook's virtual assistant succeed where others have failed?

The trillion dollar question: can Facebook's virtual assistant succeed where others have failed?

Think of a world where Facebook knows where you are, where your next meeting is, and how long it'll take you to get there, imagines Mindshare's head of mobile.

Share

Get news by email