From Leicester City to Rocky Balboa, underdogs capture our imagination. TalkTalk Telecom (TALK) fits the bill. The 'quad-play' provider of television, broadband and both mobile and landline telephony has seen its valuation plunge since it fell victim to a cyber attack in October. True, initially TalkTalk looked to be in big trouble, but the damage was less than feared and investors overreacted. Now, as the group shows signs of recovery, its shares are lowly rated and come with a fat dividend yield.
- Fat dividend yield
- Simplified business model
- Customer 'churn' lowest ever
- Prospects for 'business' section
- Competitive 'quad-play' market
- First-half revenue set to fall
The seller of cut-price telecoms bundles has around 4m phone and broadband customers, including 740,000 users of high-speed fibre, as well as 750,000 mobile subscribers and about 1.37m television customers. It suffered a cyber attack in October that put the personal information of around 157,000 customers at risk. But management curbed subscriber losses through free upgrades, smart marketing and improved customer service.