Plusnet price rises boost profit after John Lewis closure
Profit has risen at Plusnet despite a slump in customer numbers following the closure of its mobile division and John Lewis axing its broadband platform.
The Sheffield-headquartered broadband provider, which is owned by BT, suffered a 29 per cent reduction in its customer base following the closures.
However, annual contractual price rises partially offset the fall in its turnover to just five per cent.
Newly-filed accounts with Companies House have revealed that Plusnet’s turnover decreased in the year to 31 March, 2024, from £423.3m to £401.8m.
However, its pre-tax profit improved from £60.6m to £82.2m over the same period.
As a result of its improved profitability, Plusnet issued a dividend of £80m for the year, up from £60m.
Working from home trend boosts Plusnet
A statement signed off by the board said: “The UK broadband market remains very competitive, with other providers offering discounted broadband and phone bundles in order to gain market share.
“Increase in demand for fibre optic broadband continued during the year with customers prioritising speed and reliability as they are increasingly reliant on their broadband connection for working from home and everyday life.
“Plusnet continues to invest in marketing to enhance its brand awareness in response to competitive market pressures, prioritising customer value over volume growth.”
Plustnet added: “The continued move to home working has highlighted the importance of home connectivity and reliably, high-speed broadband.
“As a result, fibre optic broadband demand remained strong during the year, with 74 per cent of the company’s broadband customers now having a fibre product.
“The mobile portion of the business was closed following management decision to focus on markets where the greatest returns can be achieved for the company and concentrate all future capital expenditure within the broadband area.”
During the year the average number of people employed by Plusnet increased from 990 to 1,077 because of an increase in sales advisers and a shift to using in-house rather than partner agents.