Merrill Lynch Upgrades Telewest Report

Broker Merrill Lynch has given Telewest Communications a buy recommendation following “increased efficiency” at the cable company.

Telewest’s interims, due on the 6 August, should show EBITDA growth of 230% to £56 million on turnover up 24%, according to the report. This is a raise on Merrill Lynch’s previous forecasts which gave EBITDA for 1998 of £128 million; 1998’s forecast is now £142 million.

Telewest is to enter shares on the FTSE100 Index following the completion of its acquisition of General Cable (see Telewest Buys General Cable For £649m).

EBITDA – Earnings Before Interest, Tax, Depreciation and Amortisation