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Shareholders are scrambling to keep the company afloat
TalkTalk has reported deepening financial woes, with losses reaching £72 million in the six months to August 2024, up from £47 million in the same period last year, according to its latest accounts which have been seen by The Telegraph.
Revenues also fell 6% to £700 million, reflecting a shrinking customer base and the sale of its business division for £95 million last year.
Analysts warn that TalkTalk could lose up to 250,000 customers this year after slashing its marketing budget. TalkTalk itself forecasts a 5% annual decline in customer numbers over the next five years.
In a bid to stop its collapse, billionaire founder Sir Charles Dunstone and other shareholders injected additional funding into the business this summer. In August, the company announced that it has signed a binding agreement on a refinancing deal, with company shareholders including founder Sir Charles Dunstone, Toscafund, and Ares Management, agreeing to invest an additional £170 million into the business, on top of the £65 million invested in July.
The deal also included the transfer of assets including Virtual subsidiary and the customer bases of Ovo and Shell, bringing the total refinancing to over £400 million.
These funds did little to reassure onlookers, however. In October, Deloitte resigned as TalkTalk’s auditor, citing inadequate financial controls for a business of its scale. Meanwhile, unpaid supplier bills, including to BT’s Openreach, have added to the strain, according to the Telegraph.
During this turbulent period for the company, it is reportedly reconsidering its strategy. Once known as a value broadband provider, it faces stiff competition from rivals offering aggressive discounts.
A potential £500m sale of its wholesale division, Platform X, fell through back in August.
TalkTalk has declined to comment.
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