Cyber breach cost TalkTalk £60 million and 95,000 customers
2 February 2016 |
Internet service provider (ISP) TalkTalk estimates that last year's cyber breach cost it 95,000 customers and up to £60 million, the firm revealed today.
In its third-quarter update, the company said the attack had a “trading impact” of £15 million and led to “exceptional costs” of between £40 million and £45 million.
It lost a total of 101,000 customers in its third quarter, which ended on December 31st. It is estimated that 95,000 of these left the firm due to the data breach.
The attack, which took place in October last year, affected 157,000 of TalkTalk’s subscribers and more than 15,000 bank account numbers were stolen.
The firm offered a free upgrade to all of its customers – an offer that was “more successful than expected” according to today’s update.
TalkTalk CEO Dido Harding said: “It is encouraging to see the business returning to normal after a challenging quarter that was dominated by the cyber attack.
“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 that 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.”
She added that the ISP expects “a material step up in profits in H2, with full year results in line with market consensus”.
TalkTalk’s revenue growth for its third quarter stood at 1.8 per cent.
Last week, Information Commissioner Christopher Graham called the TalkTalk breach a “car crash” that should warn the industry over the potential damage of cyber attacks.
For more information, see the TalkTalk website.