Low cost internet provider Talk Talk has announced its fastest growth in subscribers since 2010. The company added a net 15,000 broadband customers between July and September 2014, as well as 25,000 in the first half of the year.
In addition, 67,000 subscribers upgraded their internet connection to fibre, and Talk Talk also added 115,000 net television customers in the second quarter – more than BT, Sky and Virgin put together, according to Talk Talk Chief Executive Dido Harding.
Even though the number of new television subscribers has fallen from the 185,000 adds of the first quarter of 2014, it still means that a total of 1.2 million homes are now subscribed to Talk Talk TV.
In comparison to these figures, BT posted its lowest level of broadband subscriber growth since 2012, although with 88,000 net adds in the latest quarter, this still puts the company ahead of its rivals.
Talk Talk’s Managing Director of Consumers Trista Harrison puts the firm’s success down to the low cost and flexibility of Talk Talk’s television packages. ‘(O)ur flexible, affordable YouView TV offering attracts families who want to pay a little for more content, not a lot’, she comments.
Broadband success can be attributed to ‘a real demand for … best value unlimited broadband products’ according to Talk Talk, noting that it is the only ISP to offer customers unlimited downloads with all packages.
The company’s pre-tax profits for the first half of the year saw an impressive swing to £20 million, compared to the £9 million loss reported in the first half of 2013. Underlying earnings also rose to £110 million, an increase of 45 %.
Ms Harding noted that ‘a third of our customers now take phone, broadband and TV from us, nine per cent take mobile and we recently announced that mobile will now come as standard for all Plus TV customers’.
The increasing success of bundled products reflects something of a shift in the telecoms market, as more and more consumers seek so-called ‘triple-play’ or ‘quad-play’ packages – receiving landline, internet, television and possibly mobile from the same provider.
With BT preparing to enter the mobile market and Vodafone launching its television and home broadband services next year, we can expect to see this trend accelerate further in the relatively near future.