TalkTalk ISP has released its latest second quarter results (Q2 2009) that also include the figures of the group’s recent acquisition, Tiscali broadband provider.
Total customer base has jumped from 2.85m in Q1 2009 to 4.119m in Q2 2009. TalkTalk broadband UK, owned by the Carphone Warehouse, is now a combined entity of AOL, Tiscali and its own broadband service network. Excluding Tiscali, TalkTalk along with AOL, now, have 2.93 million broadband connections in UK. Nearly eighty percent of these customers (2.3 m) are now using TalkTalk’s unbundled (LLU) network as the service provider has moved 75,000 new lines to its cheaper, LLU network.
Over-all performace was hit by Tiscali which has lost 62,000 customers in the quarter. This has reduced the new net additions of the group to just 15,000, while TalkTalk has shown an excellent growth, adding 77,000 broadband connections during the previous quarter.
TalkTalk acquired Tiscali broadband in May this year for £236m. Tiscali, one of the cheapest broaband providers in the UK has half of its customers connected by its LLU network.
Charles Dunstone, Chief Executive Officer, has commented:
“Tiscali’s broadband customer base fell by 62,000 during the period, which was broadly in line with our expectations, with the churn rate improving as the quarter progressed due to better customer retention activity.”
“We nevertheless remain confident that TalkTalk Group will end the current financial year with a total broadband base of between 4.1m and 4.2m customers and thus maintain the guidance we announced in June this year.”