TalkTalk profits halve
May 12, 2016
Telecoms provider TalkTalk has revealed full-year profits more than halved following a cyber attack on its systems last October, costing the company £42 million (€53.2m).
The group saw profits fall 56 per cent to £14 million compared to £32 million the previous year, but chief executive Dido Harding remains optimistic, saying business has “bounced back”.
“We recorded our lowest ever churn and stabilised the broadband base, testimony to the speed with which customer sentiment has recovered,” she said. “We reported full year results in line with our guidance and have declared a 15 per cent higher dividend for the year.”
TalkTalk lost 101,000 subscribers in its third quarter, following the hack on its systems, which resulted in the personal data of nearly 160,000 people being accessed.
The group offered customers a free upgrade to help heal concerns after the data breach and created a new bundle of online and telephone security features to boost customer protection.
On an underlying basis, company earnings grew 6.1 per cent to £260 million thanks to a step-up in the final six months and the group said it expects current year earnings to rise to between £320 million and £360 million.
TalkTalk says total revenues grew 2.4 per cent to £1.83 billion in the 12 months to March 31st.