TalkTalk benefits from reduced broadband churn

8 February 2012

Business broadband provider TalkTalk has claimed that it is attracting a higher class of ISP customer that are less likely to switch service provider.The firm's claim comes as shares in the company climbed by 9.4 per cent off the back of improved broadband penetration.Speaking to the Financial Times, Dido Harading, chief executive of the internet service provider, noted: "Fundamentally, the reason why we have been able to upgrade our profit guidance is because we are being more successful in attracting and retaining more profitable customers."She added that churn had stabilised in 2011 and as a result the firm is looking forward to landing a sold return in the first half of this year.TalkTalk recently underwent a demerger that saw it budded off from the Carphone Warehouse. It also bought up ISP Tiscali back in 2009, which was plagued with customer service issues. So the positive news will be welcomed by the firm's shareholders.

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