TalkTalk Posts £465m Loss, Receives £100m Bailout, and Raises Further £20m

TalkTalk has reported pre-tax losses of £465m, up from £153m the previous year, and a £177m business write-down. The company's headcount has been reduced by nearly 500, and it has shed around 420,000 customers, leading to a 7% decline in revenues to £1.4bn. A £100m bailout from Ares Management was announced after the accounts were signed off, with a further £20m raised from existing stakeholders.

TalkTalk Group has published its annual accounts, revealing a significant downturn in financial performance. The company reported a pre-tax loss of £465m for the year ended 28th February 2025, up from £153m the previous year [1]. This substantial loss is accompanied by a £177m business write-down and a 7% decline in revenues to £1.4bn.

The company's headcount has been reduced by nearly 500 employees, bringing the total to 1,570 [1]. Additionally, TalkTalk has shed around 420,000 broadband customers, leaving the group with a total of 3.2 million customers [1]. The loss of customers is attributed to increased competition and a refocused acquisition strategy [2].

TalkTalk's gross profit has decreased to £692m from £746m, while headline operating costs have fallen to £418m from £495m [1]. The company's net debt, excluding leases, has risen from £985m to £1,206m, or from £1,785m to £1,966m including leases [1].

Despite the challenging financial environment, TalkTalk has secured a £100m bailout from Ares Management and raised a further £20m from existing stakeholders [1]. The company has also been exploring potential buyers for different parts of its business and has recently migrated some of its legacy broadband and phone customers to Utility Warehouse [1].

TalkTalk's statement noted that the markets in which its businesses operate have remained fiercely competitive, and the company has continued to provide a value-based proposition to both wholesale and consumer customers [1]. The company remains focused on product reliability and improving customer service.

References:
[1] https://www.ispreview.co.uk/index.php/2025/08/broadband-isp-talktalk-publish-uk-accounts-to-reveal-surge-in-losses.html
[2] https://www.business-live.co.uk/technology/talktalks-huge-losses-revealed-first-32209968