Telewest Optimistic After Interim Results

Telewest’s interim results for the quarter ending 30 June this year, released this week, show that pre-tax losses fell £721,000 to £141.6 million, whilst sales rose by 25% to £266 million.

Business and residential telephony turnover also displayed significant increases, 41% and 27% respectively. Telewest were unperturbed by a growth of “churn” – the proportion of customers opting not to renew their television and telecom subscriptions.

David Van Valkenburg, chief executive of Telewest, commented: “While churn in cable TV declined in the second quarter, both TV and telephony churn are receiving our close attention. There are encouraging signs that we have tackled the product related causes of churn. Our efforts are now focused on bolstering the support systems our people need to serve our customers most effectively.”

Telewest is planning to launch a high speed internet service in the first half of 1999, and to begin trials of digital services later this year. The terms of a proposed merger between Telewest and General Cable were agreed in April of this year (see Telewest Buys General Cable For £649m), the realisation of which will result in the creation of the biggest UK cable operator.

David Van Valkenburg again: “Our interim results show we are well placed to sustain our leading position in the cable market.”

Telewest Communications: 01483 750 900