TalkTalk sheds customers as revenues fall

Internet service and telecoms provider TalkTalk has posted a fall in year-on-year revenue, contributed to in part by a steep decline in broadband subscribers.

The company posted its first quarter 2011 financial breakdown on Thursday, revealing that it had made a net loss of 27,000 broadband subscribers during the three month period, ended 30 June. The decline contributed to a net revenue decrease of five percent in a year-on-year comparison, dropping from £444m to £423m.

However, the company — which came bottom in Ofcom's ISP complaint stats — noted that it had improved its customer service and reduced the number of support calls it receives, allowing it to reduce the number of outsourced support providers and lower total service costs.

"We are now seeing the tangible results of our efforts to simplify and improve our business processes and create a better experience for our customers," Dido Harding, chief executive of TalkTalk, said in a statement. "Technical support and general service calls from customers in the first quarter were 40 percent lower than last year, and more than 50 percent of all customer contacts are now on-line."

TalkTalk is expected to report its profits in its interim report due in October.

On Wednesday, rival ISP and telecoms provider Virgin Media announced that it had seen a decline of around 12,000 broadband subscribers over the last three months. Despite this, the company still posted revenue growth thanks to the uptake of its more expensive cable services.