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Telecoms

TalkTalk hit by £45mln of costs for cyber attack

Telecoms group says business is getting back to normal after system hack

TalkTalk (LON:TALK) took a hit of up to £45mln from last year's cyber attack but said its business was returning to normal as it forecast a 15% dividend hike.

The telecoms group said the trading impact of the high-tech assault on its systems, which sparked fears about security of customers personal details, was £15mln.

It incurred one-off costs of between £40mln and £45mln in putting right the problems.

But shares in TalkTalk rose 15.6p, or 7.2%, to 233.5p as third quarter revenue rose 1.8% and it forecast a rise in the final dividend by 15%.

The group said it expected a material rise in second-half profits and annual results in line with the market consensus.

It predicted pre-tax earnings before interest, depreciation and amortisation in 2016 to be between £255mln-£265mln and between £320mln-£360mln in 2017, with dividends at least matching those in 2016.

Chief executive Dido Harding said: "Our customers have responded well, with almost half a million customers choosing to take up our unconditional offer of a free upgrade.

"Both churn and new connections recovered during December and January and independent external research has revealed that customers believe we acted in their best interest.

"In fact trust in the TalkTalk brand has improved since just after the attack and consideration is higher now than it was before the incident."

Shares in TalkTalk rose 17.8p, or 8.2%, to 235.7p.

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