Business

TalkTalk slumps 11% on profit warning

TalkTalk Image copyright Reuters

TalkTalk shares have fallen almost 11% after the broadband provider cut its dividend and warned profits will fall.

TalkTalk reported a £133m pre-tax profit for this year, up from £107m for 2016, but said it expected profits to fall again this financial year as it invests to attract new customers.

The firm suffered a major hacking attack in 2015 that halved its profits that year.

The FTSE 100 ended the day 0.6% higher at to 7,385 points.

Hargreaves Lansdown was the biggest riser, up 2.7%, while Barratt Developments ended 2.2% higher after the housebuilder said annual profit would be at the top end of forecasts.

Barratt expects a £733m pre-tax profit for the year to June, up 7% on the previous year, despite building a similar level of homes.

The builder has been boosted by rising house prices and government schemes to help people get on the housing ladder.

ITV was the biggest faller, down 2.3%, after the broadcaster reported a 3% drop in revenues for the first quarter of the year.

On the currency markets, the pound was flat against the dollar at $1.2936 and against the euro at 1.1896 euros.

Brent crude regained some of the ground it lost last week, rising 3% to $50.20 a barrel.