TalkTalk focuses on existing customers to deliver profit rise

* Q1 revenue dips 0.4 pct, beating analysts' forecasts

* Reiterate full-year growth targets

* Shares (Berlin: DI6.BE - news) up 1.2 pct (Adds CEO comments, analyst reaction, shares)

LONDON, July 20 (Reuters) - TalkTalk, the British broadband provider that was hit by hackers last year, said a focus on keeping its existing customers happy rather than chasing new ones with cut-price deals would help it meet earnings targets this year.

Chief Executive Dido Harding said she was "very pleased" with the way the year had started, with revenue down just 0.4 percent in its first quarter despite a fall of 9,000 in the broadband customer base as a result of last year's cyber attack.

"We are spot on where we want to be," she said in an interview on Wednesday. "We have focused on bringing churn down, and we'll be completely rational about going into the market to acquire new customers at affordable prices in order to ensure we'll meet all our targets."

TalkTalk's shares were trading up 1.2 percent at 226 pence at 0841 GMT, as Barclays (LSE: BARC.L - news) analysts said the decline in first-quarter revenue beat consensus forecasts.

Investors were also reassured by the group reiterating its expectation to grow revenue modestly over the full year, and produce core earnings of between 320 million and 360 million pounds, compared to 260 million pounds last year.

Harding said the company, which competes with BT, Sky (Amsterdam: BK8.AS - news) and Virgin Media, would increase profit by focusing on existing customers: "By doing a better job for them, improving customer satisfaction, and delivering more products and services in an affordable way".

Churn - the percentage of customers that switched providers - was broadly stable quarter-on-quarter at 1.36 percent.

Harding brushed off any concerns about the impact of Brexit on demand for TalkTalk's services.

She (Munich: SOQ.MU - news) said that as a value-for-money provider of an essential service, the group would be broadly immune to any slow down in Britain's economy after the country voted to leave the European Union last month.

($1 = 0.7635 pounds) (Reporting by Paul Sandle; Editing by Alexandra Hudson)