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TalkTalk continued to lose broadband subscribers during the second quarter of the year, but the firm is hopeful of a turnaround in fortunes.

The broadband provider saw its user base fall by 38,000 between April and June 2011, as customers fled to rivals BT and Sky.

Average revenue per customer increased year-on-year from £23.90 to £24.70, but this was not enough to prevent a five per cent drop in revenue to £423 million.

TalkTalk has experienced a tough 12 months, experiencing difficulties securing the loyalty of former Tiscali customers, while technical glitches have had an adverse effect on subscriber loyalty.

However, Chief Executive Dido Harding expressed hope for the future, claiming that a renewed focus on customer service was sure to pay dividends in the coming months.

She said the TalkTalk customer experience is improving – as evidence by fewer complaints during the second quarter of 2011.

Customer churn is falling, new services are gaining traction and the next phase of the provider's unbundling programme is accelerating, Ms Harding added.

"We are confident that we will deliver growing revenue in the second half," she stated.

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