TalkTalk puts aside £25m to add more customers as demand soars

Oliver Smith
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Dido Harding’s spending plan worried some investors and shares fell 5.3 per cent yesterday
TalkTalk is planning to invest up to £25m in acquiring more customers in the second half of the year, as demand for its broadband, TV, mobile and fixed-line telephone packages continued to increase during the first half of 2014.

Chief executive Dido Harding told City A.M. the spend was “a thoroughly good thing… We’re actually spending less per customer [acquisition], but the market is there for us to acquire more, hence the increased spend.”

TalkTalk reported the fastest growth in broadband subscribers in four years in its second quarter, with 15,000 new sign ups. Some 115,000 customers took TalkTalk’s TV service in the quarter, a slowdown from the 185,000 additions in the first, but still more than its rivals Sky, Virgin Media and BT put together, TalkTalk said.

Its revenue increased by 3.3 per cent to £871m in the first half of the year, while core profits for the period grew 48.5 per cent to £101m.

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