TalkTalk profits halved to £14m after cyber attack

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Yearly revenue at the operator grew 2.4 per cent to £1.83 billion

TalkTalk saw its profits for the last financial year more than halve to £14 million after October’s cyber attack which resulted in the personal data of nearly 160,000 customers being accessed.

The hack cost the quad-play provider £42 million, and 101,000 subscribers left in the following quarter, impacting TalkTalk’s yearly profits.

Yearly revenue grew, however, by 2.4 per cent to £1.83 billion, driven by a strong performance from TalkTalk Business, which made up 30 per cent of all revenues.

The business unit saw its revenue grow by five per cent to £600 million,  driven by soaring demand for data services, with over 9,000 new high speed data lines connected, up 23.7 per cent year-on-year.

TalkTalk added 90,000 new mobile connections during the three months to March 31, taking its base to over 900,000 (Kantar WorldPanel).

TalkTalk CEO Dido Harding said: “The business bounced back strongly in the final quarter following the cyber attack in October. We recorded our lowest ever churn and stabilised the broadband base, testimony to the speed with which customer sentiment towards TalkTalk has recovered, the success of our greater focus on existing customers, and the growing benefits of our simplification programme.

“TalkTalk is well positioned to build upon our already strong credentials as the UK’s leading value for money quad-play and B2B operator.

“We see strong opportunities for growth across all our products, both for consumers and for businesses, against the backdrop of an increasingly supportive regulatory environment. As a result we are reiterating our financial guidance for FY17 of £320m-£360m EBITDA.”

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