TalkTalk Mobile increased mobile customer numbers by 32,000 to 117,000 in the three months to 30 September, driven by the introduction of its contract deals earlier this year.
The telecoms company’s latest figures published today show a surge in existing customers taking TalkTalk Mobile’s services in Q2, up from 85,000 in the previous quarter to 117,000 in Q2.
TalkTalk attributed the rise in numbers to the introduction of its contract and handset deals in August this year. The company offers three contracts – Large, Medium and Small, starting from £5 a month.
Announcing its interim results, the company said: ‘As a result (of the introduction of the contract and handset deals) our mobile offering has gained strong traction, with 117,000 customers now taking advantage of our innovative mobile-to-fixed calling offers, competitive call rates, and now handsets. We expect the growing mobile base to drive ARPU growth and over time, reduce churn.’
However, TalkTalk’s on-net broadband customer base has fallen by 4,000 to 3.8 million which it said was due to the loss of partially unbundled customers and a decline in its off-net customer base. Its total customer base stands at just over 4 million.
TalkTalk said in spite of this fall, it had seen ‘strong growth’ in Q2, adding 66,000 net new customers to its more profitable fully unbundled base, 36,000 more than were added in Q1.
The company said the figures demonstrated TalkTalk was ‘returning our base of phone and broadband customers to stability.’
Consumer complaints are also falling after TalkTalk launched a drive to improve customer service levels this year.
The company said: ‘During the quarter our ongoing focus on customer service improvement has continued to have a positive impact with both total calls to our customer service centre and complaints to Ofcom reducing. Call volumes were down 19% year on year and complaints to Ofcom fell by 38% year on year and by 18% over the previous quarter.
'We saw continuing improvement in churn through the quarter with on-net churn at 1.6%. We expect churn to continue to reduce from further improvements in customer service and as we see the benefit of more customers taking additional products from us.’
Across the wider business, underlying profit was £155m, up 6.1% on last year. Sales were £828m, up 1.9% on 2011.
Editor: Carol Millett