TalkTalk still feeling effects of cyber attack as revenues slip 3.2%
19 July 2017
Telecoms group TalkTalk has said revenues slipped in its first quarter despite adding 20,000 broadband customers as it continues to recover from a cyber attack nearly two years ago.
The firm posted a 3.2% fall in revenues in the three months to the end of June, with good growth in its corporate and wholesale broadband business offset by a weaker performance in its consumer arm.
It said consumer revenues were being impacted by re-contracting on to new fixed low-price plans and a smaller average broadband customer base.
But the firm said: "These effects are expected to moderate as the base grows, and we drive fibre take-up and other products such as TV.
"As a result, we continue to expect full-year revenues to grow."
TalkTalk added that it now has 1.3 million customers on fixed-price broadband plans and has a lower rate of so-called churn of customers leaving the group – at 1.2% against 1.4% in the previous year.
The group’s shares were hammered in May after it posted a lower-than-expected rise in annual profits and warned over the next year’s results, sending the stock slumping as much as 8% in one day.
It slashed investor dividend payouts and flagged that full-year earnings in 2017/18 would come in up to 11% lower, as it embarks on an investment drive to attract more customers.
TalkTalk has been battling to turn itself around after being rocked by a cyber attack in 2015, which saw the personal data of nearly 160,000 people accessed by hackers.
It led to tens of thousands of customers deserting the firm and cost it £60 million.