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TalkTalk's unconditional offer of a free package upgrade to customers has proved extremely popular.

Following its high-profile hack in October 2015, the broadband provider confirmed it would give away free package upgrades as an apology to its entire customer base.

Consumers were entitled to choose one upgrade, picking from options including extra TV channels, unlimited UK landline or mobile calls for 12 months at no extra cost, or a SIM card with a 100 minute, 250 text and 250MB monthly allowance free for 12 months. 

TalkTalk also vowed not to "auto-renew" these offers, meaning that when the free period ended, customers would not suddenly be hit by extra charges.

In its latest trading statement, TalkTalk has revealed that nearly half a million customers took advantage of this offer, which was more than it had originally expected.

The organisation also pointed out that it has responded to the cyber attack strongly, with both churn and new connections recovering throughout December and January.

Furthermore, while the incident had a trading impact of £15 million, with exceptional costs reaching up to £45 million, the company saw revenue growth of 1.8 per cent during Q3.

Dido Harding, Chief Executive of TalkTalk, commented: "Independent external research has revealed that customers believe that we acted in their best interest. In fact, trust in the TalkTalk brand has improved since just after the attack and consideration is higher now than it was before the incident."

Ms Harding said the company is now expecting to see a "material step up in profits" over the coming year and in 2017, partly because of its "renewed focus on our existing customers".

She added that TalkTalk is in a good position to benefit from regulatory reviews that are currently going on in the broadband sector.

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