Barclay Knapp is stepping down as chief executive of NTL, just months after the UK cable group emerged from its Chapter 11 bankruptcy process (see NTL Emerges From Bankruptcy).
Knapp, who joined NTL ten years ago, will step down from his current role at the close of business on Friday, but will stay at the company until the end of the year to advise the board and senior management team on strategy. He will be replaced by chief operating officer, Simon Duffy, who joined the company as part of a raft of executive appointments in February.
Knapp says he has ‘accomplished his mission’ as chief executive after having overseen the financial restructuring of the company, which alleviated its substantial debt, but prompted the loss around 80,000 customers during the course of 2002. Critics have claimed that it was Knapp’s hand on the rudder which steered the company into financial dire straits in the first instance.
Commenting on his departure, Knapp today said: “The company is back on track and delivering a strong operational performance. I have experienced real highs and lows during my ten years at NTL and I remain as passionate as ever about the future of cable in the UK.”
NTL is currently the UK’s largest cable TV operator with more than 1.2 million digital subscribers. However, the group has struggled to manage the huge debt it has acquired following a number of acquisitions over the last few years.
Analysts have claimed that NTL is set to announce a major fund raising exercise that will net around $650 million and which could increase the possibility of a merger with UK rival Telewest Communications (see UK Cable Merger Still Viable).
Financial results The company returned to profit after emerging from Chapter 11 bankruptcy earlier this year and has today reported positive second quarter financial results. Revenues increased to £551.3 million, up from £549.0 million in Q2 2002 and net losses fell to £259.0 million, down from £284.8 million in the previous year.
The group has begun to build its customer base again, with 39,800 new additions in the quarter, taking the total subscriber base to 5.6 million in the UK. The number of broadband internet customers rose by just over 100,000 to 764,200.
Annualised churn – the proportion of departing customers – stands at 12.9%; BSkyB’s, by comparison, is just 9.4% (see BSkyB Results Beat Market Expectations As Subs Hit 6.8m). NTL’s average revenue per user (APRU) was £41.04 in Q2, up 4% year on year; Sky’s annualised ARPU is £366.
