Data breach crunches Latitude’s half year results

The news: Latitude Financial Services has swung to a hefty half-year loss after its interim results were weighed down by the costs of a major cyber attack in March.

The numbers: The company posted a half-year net loss of $98.2 million, compared to a a $45.9 million profit a year ago. It has outlined $76 million in pre-tax costs and provisions due to the data breach. Cash profit also dived 88% to $7 million, in line with the guidance in May. Latitude will not pay any interim dividend.

The context: The consumer lender’s shares are down more than 25% over the last 12 months, with operations and earnings hit by the massive data theft from its systems first discovered in March. It has also been affected by rapidly rising interest rates, resulting in margins contracting.

What they said: “Latitude’s half-year result reflects what has been a persistently difficult macro environment for financial services businesses and of course, the operational disruptions caused by the March cyber attack on our company,” Managing Director and CEO Bob Belan said.