A move to focus on existing customers and improve operations has paid off for Talktalk Telecom Group plc (LON:TALK), which said it expects to deliver "materially higher" profits this year compared to last.
It comes after the firm was hit by a massive cyber attack a year ago, costing it £60mln and losing it 101,000 customers. Although customers did not lose out financially from the hack, many were left angry at the group's handling of it.
Operating profit for the six months to September 30 came in at £60mln ($75m), more than double the £25mln profit reported last year. Pre-tax profits rose to 46mln from 14mln as revenues fell by 10mln to 902mln.
Underlying earnings (EBITDA) were £130mln - 44% higher against the same time last year, while the second quarter churn rate (the number of customers leaving) reduced to 1.43% compared to 1.58% in the same three months last year.
Dido Harding, chief executive, said: "One year on from the cyber attack, we have maintained a relentless focus on looking after our existing customers and keeping up the pace across a wide range of operational improvements to make TalkTalk simpler and better for customers. As a result we have seen significant year-on-year improvements in churn and customer satisfaction."
She said there had been a good initial response to new price plans, now trading for a month, with ten times as many customers re-contracting than in an average month.
The group expects to deliver further strong progress in EBITDA (earnings before interest, tax, depreciation and amortisation) during the second half and as a result of its successful launch of new propositions, with EBITDA towards the lower end of the £320mln-£360mln guidance - is in line with market consensus.
Shares fell 0.45% to stand at 200.20p.