TalkTalk added 23,000 customers in its fourth quarter of trading, after an aggressive push on its contract offer.
The company posted its full year results this morning, its first since launching a post-pay proposition. It now has 175,000 customers at the end of March, compared to 61,000 a year ago. Its contracts start at £5 per month and the company said they add to average revenue per user and its profits. TalkTalk said a mobile customer was more likely to recommend the company than those who just have its landline and broadband products. It said seven out of 10 customers said they were more likely to stay with the company beyond their contract because they have a mobile device. TalkTalk said there were 'real opportunities' to profitably grow its mobile business during the next year.
Across TalkTalk's wider business, an investment in its television and broadband businesses hit the bottom line. For the full year, it posted a pre-tax pforit of £184m, down from £233m. Sales dropped by 1% to £1.67bn. Dido Harding, TalkTalk CEO, said: 'This has been a momentous year for TalkTalk, which is now a fundamentally better business than it was three years ago. In the year we have returned our customer base to growth, successfully launched TV and mobile handsets, grown TalkTalk Business, and returned to year-on-year revenue growth in the final quarter.
'We have the UK's fastest growing new TV business and our customers clearly appreciate its comprehensive content and value for money pricing. We will continue to invest in growth and remain confident that having more customers who buy more products and who stay with us longer, puts us firmly on track to achieve our medium term financial targets.'
Author: Graeme Neill