TalkTalk Loses 50,000 Customers In Three Months

TalkTalk has lost customers for the fifth successive quarter, falling further behind rivals BT and Sky.

Fifty thousand customers defected from TalkTalk in the three months leading up to December, the company has reported, bringing the total number of customers it has lost since November 2010 to 170,000. However the ISP’s share price rose by nine percent after it raised its profit forecast.

Mass defections

The defections see TalkTalk’s total number of subscribers drop to 4.08 million, affecting its plans to expand its customer base in the last few months of 2011.

The company, formed through the mergers of Tiscali, Pipex and Carphone Warehouse lost 25,000 subscribers to rival providers in the same quarter last year due to problems with migrating Tiscali customers onto its billing system .

It incorrectly billed around 62,000 Tiscali customers for services they never received andwas fined £3 million by Ofcom last August. Its customers were also found to be “the most likely to change providers” after it finished bottom of an Ofcom broadband customer survey.

Despite these setbacks, TalkTalk’s full year underlying earnings are expected to be between 18-19 percent of revenues, an increase from the previously expected 17-18 percent and an improvement on last year’s 15.6 percent margin.

Revenues increased by £1 million from the second quarter to £422 million, but still down by five percent from last year. However the business is becoming more profitable as the average revenue per user increased to £25.30 from £24.70 from the last quarter.

TalkTalk may attract customers who want a greater say in what their children view on the Internet after it announced yesterday that new users would have to make a decision whether or not to enforce parental controls before their broadband is activated.

Steve McCaskill

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

View Comments

  • What do you expect when all their services , and billing queeries, are answered all the time in delay, behind better run companies.

    • I have been waiting for a statement of my late sons A/c since May 2011 it has been paid for ,yet never received.at least 8 emails sent ,same amount phone calls.numerous excuses,still no statement.

  • Yes, they billed me for esentials dec and jan and they didn't have me up and running until feb,they also threw in extra charges, they said i could cancel up to my go live date of feb2nd but i didn't recieve my kit until the 3rd,also i did not recieve my monthly bill for 2 and 1/2 months so it would seem that they are deliberately being decietful, just not good enough!!!

  • These Bad ISP,s have been doing this for years ,i am glad that we are fighting back and going for the better Companys,i am with Virginmedia ,with no compliants todate

    judder

  • Also, I would leave if they had not tied me into a contract.

    They have a sharp practice of making customers pay for line rental one year at a time in advance to get the advertised lowest monthly line rental.

    • nothing wrong with talk talk signed up for another 18 months contract paid up front for line rental been with then for 10 years

  • I have been with TalkTalk for nearly 10 years, from when they were home call.

    I get free calls to 80 international countries, my ADSL2 max's out at around 18mb, and costs less than £20 a month including line rental.
    Have not had a problem with customer care, in fact they ring me every six months to see if I am happy.

    can't fault the service or the price

  • Talk Talk have billed us incorrectly every month since 2006 when we joined for free broadband which we have never had. The only way they agree to paying out a refund for being overcharged is for us to sign up to another agreement. They are by far the worse company we have ever had to deal with. Crooks through and through. Nothing but fake promises.

    • Let me get this right.
      There are many many telecoms/BB providers in the UK yet you claim that TT have billed you incorrectly for 6 years and you are still with them. Are you a real complainer or just flapping your gums?

  • I've been with them talk talk for two years now and have just subscribed to their fibre offering Im getting fantastic speed four times faster almost five times faster than before.
    Bring it on
    Satisfied customer they should have me stuffed(fawlty towers reference)
    they've billed me a couple of times to phone numbers I haven't rang in the past but seeing as they are to other talk talk numbers I was not charged so no bother.
    Enough said and done
    Martin P Read

  • sevice is absolutely appalling, alesson four a lot of people do u homework and dont get tied in to contracts if possible

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