Telewest Losses Belie Success In Q1 Results
Cable operator Telewest Communications released its first quarter results this morning which fell in line with expectations. Pre-tax losses grew from £137 million to £209 million, whilst operating profits rose by 34% to £321 million. These figures fall in line with analysts’ predictions and reflected aquisitions and merger activity initiated by Telewest in the past year – notably the £2.3 million merger with content provider Flextech (see Telewest And Flextech Report Losses Ahead Of Merger) and the purchase of cable operator Eurobell (see Telewest Buys Eurobell For £200m).
The company says it now has a customer base of 1.7 million, having added 23,000 during the quarter and reduced churn in its cable TV division by 2.9% to 23.75%.
Adam Singer, Telewest’s chief executive was upbeat about the results, describing the company as “the champions of the all you can eat cyber buffet.” He continued, “Our numbers show that we are punching above our weight in making the UK cable industry the pioneer in extending broadband choice across the country.” Describing plans for improvements in execution, finance and the digital network, concluding, “We are now into the delivery stage and we are well placed to reap the benefits of the broadband age”
Shares in Telewest began the day at £1.23. By 10.30am the price had dropped to £1.18ž.
