NTL has announced its Q1 2006 results, revealing a rise in revenues and success in converting existing customers into triple play subscribers, taking all three of its communication and entertainment offerings.
The company states that revenue has increased by £6.9 million year on year, reaching £636.7 million, while the company claimed to have added 25,000 customers in the quarter, down from 40,700 in Q4 2005 and 55,700 in the same quarter last year.
The broadcaster’s growth strategy does not centre around overall subscriber growth however, with the firm preferring to up-sell its existing products and convince more customers to take its broadband and telephone products, as well as multi-channel TV.
The tactic appears to be bearing fruit, with NTL revealing an increase in those purchasing all three services, up to 34.9%, compared with 26.8% last year.
The company’s recent purchase of Virgin Mobile will also help its strategic development, transforming it from a triple play broadcaster into Britain’s first quadruple play company (see NTL Confirms £962m Virgin Mobile Takeover).
Explaining the move, Steve Burch, chief executive officer of NTL, said: “With the growth opportunities in our markets, together with substantial merger synergies, we believe we can drive significant free cash flow generation going forward, providing us with strong financial flexibility and improved capital deployment options.
Elsewhere, the company has announced its intention to make 6,000 employees redundant, generating £250 million in savings by the end of 2007 in a move which will see around a third of its workforce leave the firm.
The change will see a “significant number” of jobs outsourced by NTL, with 4,800 employees leaving within 12 months. The cable firm expects to save the equivalent of 3,400 full-time employees’ wages through the cutbacks.
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