TalkTalk receives confidence boost after cyber hack

The interim dividend, which analysts had feared could be cut, was raised from 4.6p a year ago to 5.29p

Nick Goodway
Thursday 12 November 2015 02:17
Comments

The City breathed a sigh of relief as TalkTalk revealed that the cost of last month’s cyber-attack may not be as bad as it was first feared.

Dido Harding, TalkTalk’s chief executive, said there will be a one-off cost of between £30m and £35m but that she believed: “What we did was exactly right and the responsible thing to do. If you do what is right for the customer the business is better for it.”

Half-year figures from TalkTalk showed its profits were already falling before the cyber-attack. In the six months to the end of September – before the attack in October – headline earnings fell from £110m to £90m and the bottom line swung from a pre-tax profit of £20m to an £8m loss.

The interim dividend, which analysts had feared could be cut, was raised from 4.6p a year ago to 5.29p.

Ms Harding said the move into the red was due to higher spending on the “Make TalkTalk Simpler” programme, aimed at removing lots of confusing different deals across its broadband, TV, mobile and fixed-line offers.

TalkTalk revealed its 4 million customers could have had their personal details, including bank account and credit card information, stolen on 21 October, shortly after the hacking attack.

Police have arrested three teenagers and a 20-year-old. It later emerged that only 157,000 customers were affected.

Ms Harding said that while there had been “an initial spike of customers cancelling direct debits” after the attack, the “early signs from customers in the last three weeks have been encouraging”.

TalkTalk shares rose 28.7p or 13 per cent to 246p. They were worth 316p a month ago.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in