Friday, May 27, 2011

Cost-savings lift TalkTalk profit

19 May 2011 Last updated at 07:13 GMT TalkTalk logos TalkTalk said it was continuing to work to improve the service its customers get TalkTalk has seen its profits increase five-fold in its first annual results since it was demerged from Carphone Warehouse.

Its pre-tax profit for the year to 31 March 2011 totalled ?57m, up from ?11m a year earlier.

TalkTalk said profits were lifted by ?55m of cost-savings connected to completing the integration of former sister business Tiscali.

However, it said this process had caused disruption for some customers.

"A number of customers suffered disruption, which caused higher levels of complaints and churn," the company said.

"We have worked hard to mitigate the impact of this disruption, and we are confident that we are now making major progress in improving the experience for our customers, which will lead to lower churn."

TalkTalk's annual revenues rose 5% to ?1.8bn.

It separated from Carphone Warehouse in March 2010, when it was listed on the FTSE 250 stock index.


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