TalkTalk takes hit from cyber attack

TalkTalk's CEO Dido Harding said the firm has halted the customer exodus
TalkTalk's CEO Dido Harding said the firm has halted the customer exodus

​Telecoms firm TalkTalk revealed full-year profits more than halved as it took a £42​m hit from last October's cyber attack, but said the business was bouncing back "strongly".

The group saw pre-tax profits tumble to £14​m in the 12 months to the end of March, down from £32​m the previous year.

It lost 101,000 subscribers in its third quarter and took on fewer new customers after temporarily shutting down its online sales channels in the wake of the attack, which resulted in the personal data of nearly 160,000 people being accessed.

But boss Dido Harding said it had now halted the customer exodus, with its subscriber base held flat on a net basis - those joining less those leaving - in the final three months of its year.

She 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 group expects revenues to remain under pressure over the current first half, but return to growth by the end of the new financial year, while underling earnings are expected to grow "modestly".