NTL Reports Losses As Expansion Plans Are Finalised

NTL reported losses of $278 million (£178.3 million) in its interim results today, more than double that for the same period last year. The huge expansion of the company during the three-month period ending 30 September however, means that the relative loss in terms of shares is only marginally higher at $2.69 per share.

The company will become Britain’s largest cable group when its takeover of Cable & Wireless Communications is finalised next year. Having announced the acquisition in July for £8.2 billion (see NTL Spends £8.2bn On Cable & Wireless Communications) chief executive officer Barclay Knapp is confident that integration would run smoothly.

“Our integration efforts have also given us a quick start in the fourth quarter in customer acquisition, and the skills we have developed in the integration of our recent acquisitions will certainly expedite a successful combination with CWC next year,” he said.

The group’s customer base increased by 46.6% during the three-month period to give a total subscriber base of 2.2 million. It intends to expand on this number by broadening its roll-out to more cities and deepening the digital service packages it offers to customers.

Rival group Telewest also reported deepening losses when its results were announced yesterday (see Telewest To Develop Cable-Unique Services).

NTL: 01252 402 000