Plusnet price rises boost profit after John Lewis closure

Plusnet grew profits despite a fall in customer numbers due to the closure of its mobile team and its withdrawal from the John Lewis broadband platform.

The Sheffield-based BT-owned broadband provider suffered a 29% fall in its customer base due to the closures.

However, a 5% fall in revenue was partly offset by an annual increase in contract-based rate plans.

According to accounts recently published in Companies House, Plusnet's revenue for the year ending 31 March 2024 fell from £423 million to £401. 8 million.

However, pre-tax profits for the same period rose from £60 million to £82 million.

As a result of its improved profitability, Plusnet announced an annual dividend of £60 million to £80 million.

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Working from home trend boosts Plusnet

The broadband market in England remains highly competitive, with other providers offering bonuses on broadband and phone packages to capture their own market share.

Demand for fibre broadband is growing year on year, with consumers prioritising speed and reliability as they become more reliant on broadband connections for working from home and everyday life.

"To respond to competitive pressures, Plusnet continues to invest in marketing to drive brand awareness and prioritise customer value over traffic growth."

Plustnet also said: "The increasing shift from work to home highlights the importance of home connectivity and reliable, high-speed broadband.

As a result, demand for fibre broadband remained at its highest level year-on-year, with 74% of the company's broadband customers owning fibre products.

"The mobile business was closed following management's decision to focus on markets where the company has the most profitable opportunities and to concentrate on broadband where significant future costs may arise."

Plusnet's average headcount rose from 990 to 1, 077 during the year, driven by an increase in sales consultants and a move towards introducing independent agents rather than partner agents.