TalkTalk still feeling effects of cyber attack as revenues dip
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 per cent 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 per cent against 1.4 per cent 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 per cent in one day.
It slashed investor dividend payouts and flagged that full-year earnings in 2017/18 would come in up to 11 per cent 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.