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TalkTalk profits sliced in half following cyber attack

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By Rebecca Stewart | Trends Editor

May 12, 2016 | 3 min read

TalkTalk profits have slumped over the past 12 months, following on from a cyber attack on the firm that resulted in 160,000 customers' personal financial details being leaked online last October.

Talk Talk hack

The telecoms brand's profits have halfed from £32m to £14m over the last 12 months. The company spent £42m on damage control following the breach, including investing in enhanced security features, associated IT, and incident response consultancy.

In the third quarter of the year, TalkTalk lost 101,000 subscribers as users flocked to rival networks in light of the attack. It appears to have recovered from this loss however, courting 148,000 subscribers in the fourth quarter, partly as a result of a free upgrade it offered to compensate customers for the leak.

Despite a profit dip, revenues grew by 2.4 per cent to £1.83bn year-on-year for the brand, a trend managing director, Charles Bligh, said he hoped would continue,

"TalkTalk Business has a proud history of disruptive innovation to ensure that we offer our SME, corporate, enterprise and channel customers the best and most reliable service possible.

"We expect to see this growth continue over the next year as we focus on strengthening our next generation network and delivering new services such as MyNet, SIP and unified communications to both our partners and direct customers," he added.

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