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Telecoms

TalkTalk fights back after hack attack

TalkTalk said its first quarter had gone well with revenue matching last year's 0.4% drop

There was some good news for Talktalk Telecom Group PLC (LON:TALK) on Wednesday after the chaos caused by the hacking attack last year.

TalkTalk said its first quarter had gone well with revenue matching last year's 0.4% drop despite having fewer customers.

Corporate revenue rose 7.5% with continuing growth in data, up 38.5%, and further growth in carrier revenues, up 40%, helping offset a legacy voice decline of 31%.

The broadband base was 9,000 lower during the quarter, with mobile net adds strong at 48,000 and fibre net adds of 36,000.

The TV base was 23,000 lower at the end of the first quarter as the group maintained its focus on increasing customer product take-up rather than base growth.

TalkTalk took a hit from a cyber-attack last year, sparking fears that customer personal details would be revealed, although the impact turned out to be less than first thought.

It reiterated all financial guidance including pre-tax earnings before interest, depreciation and amortisation (EBITDA) of between £320mln and £360mln.

It said first-half EBITDA is expected to be about one-third of annual EBITDA, or £107mln-£120mln, equating to material double-digit year-on-year growth.

"The year has started well with Q1 trading in line with our plan and the trends we guided to at the time of our preliminary results in May," the group said in a trading update.

Shares rose 7.3p, or 3.3%, to 230.03p in early London trading.

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