UK cable operator, Telewest Communications, dramatically reduced its losses during 2003 as the benefits of its financial restructure and a return to focus on customer relationship have begun to bear fruit.
Losses at the company were down from £2.2 billion in 2002 to just £272 million last year. Group operating loss was reduced from £1.9 billion to £87 million. The improved figures follow a £3.5 billion debt-for-equity swapped which was agreed with investors and bondholders last September (see
Telewest Agrees Restructuring Deal).
Telewest had more than 450,000 broadband internet and one million digital TV subscribers as at 11 March 2004, having added 9,000 net new household customers in the fourth quarter of the year.
Broadband is currently the group’s success story, helping to boost average revenues per user (ARPU) by 6% to £44.42, significanly higher than BSkyB’s £30.75 (see BSkyB’s Good Run Continues With H1 Results). Telewest says that 17% of its customers now take the ‘triple play’ of television, telephony and internet.
There were 14,000 subscriber additions to Telewest’s DTV service in Q4 2003, compared to a decline of 11,000 for Q4 2002. TV’s ARPU rose slightly from £20.61 to £21.16, whilst churn fell from 19.6% to 15.6%.
These improvements follow a focus on customer sevice and fault reduction, as well as a return to active marketing of the company’s services.
Shares in Telewest Communications jumped by 20.6% to 2.1p following the release of the figures today.
