TalkTalk insists it's holding onto customers

Oliver Gill
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Customer retention – or churn – has been an issue for TalkTalk (Source: Getty)

TalkTalk revenues have slipped over five per cent - but the firm claimed it had stemmed the number of customers leaving for rival operators.

The figures

Revenues for the third quarter to December fell to £435m compared with £459m over the same period last year.

Profits were also down at £332m from £351m.

Some 516,000 customers decided to stay with TalkTalk on 18 month plans during the quarter and 20 per cent of these bought voice services. 12 per cent of them also choose to talk the firm's fibre broadband package.

Read more: Man pleads guilty to TalkTalk hack involvement at Old Bailey

Why it's interesting

The announcement of the departure of TalkTalk chief exec – and staunch BT critic – Dido Harding somewhat overshadows the company's trading figures.

However, expectations for full-year trading looked encouraging.

With churn being a persistent problem for TalkTalk, the firm revealed it had locked in another 81,000 customers in the first four months of January alone – of which 75 per cent of them were on a 24-month contract.

Earnings guidance remained unadjusted. The company said it will pay a dividend of 10.58p per share.

Read more: Dido Harding steps down as TalkTalk chief executive

What the company said

However, the company conceded it wasn't all great news:

As previously indicated, the strong re-contracting activity, while delivering sustainable long term benefits in the form of a more stable and higher quality base, will impact current year revenue and earnings before interest, taxation, depreciation and amortisation.

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