Plusnet cuts jobs as sales and profit slashed
Plusnet cut more than 100 jobs as its sales and profit were slashed during its latest financial year, it has been revealed.
The Sheffield-headquartered broadband provider, which is owned by BT, has posted a turnover of £342.4m for the 12 months to 31 March, 2025, down from the £401.8m it achieved in the year before.
Plusnet said the fall in its turnover was mainly because of the closure of its mobile division and lower equipment sales.
New accounts filed with Companies House also show Plusnet’s pre-tax profit reduced from £82.2m to £70.9m.
The firm’s headcount fell in the year from 1,077 to 944 “driven by the strategic refocus and the necessity to streamline operations” while customer numbers was cut by nine per cent.
Plusnet issued a dividend of £80m to its parent company for the year, the same total as the prior 12 months.
Last month, owner BT posted a 10 per cent drop in reported profit before tax on top of a three per cent decline in adjusted revenue, while reaffirming it is ‘on track’ to achieve full-year guidance.
In a trading update for the three months to 30 June, the FTSE 100 company informed shareholders its reported profit before tax was down 10 per cent to £468m, “primarily due to an increase in net finance costs and depreciation and amortisation”.
From a business perspective its consumer customer base grew in the quarter, with broadband base up 11,000 and postpaid mobile base up 41,000.
Plusnet rival TalkTalk also cuts jobs
The results for Plusnet come after City PM revealed earlier this month the full extent of TalkTalk’s financial woes amid sky-rocketing losses and huge job losses as customers move to other broadband providers.
Accounts for the Salford-headquartered group filed with Companies House confirmed its pre-tax losses surged from £153m to £465m in the year to 28 February, 2025.
They also showed TalkTalk lost around 420,000 broadband customers in the year.
The group said the reduction was predominantly on the TalkTalk side of the business (277,000) due to its devision to “refocus our acquisition strategy and deliberately retrench from unprofitable segments and customers”.
The results also revealed that TalkTalk’s revenue declined in the year from £1.51bn to £1.41bn while its headcount reduced from 2,065 to 1,570.