NTL Is Beneficiary Of Recent Consolidation, Says Q4 Review

Cable company NTL today said that its earnings will come in at £385 million this year and will rise to £825 million in 2002. At a Q4 operations presentation today, the group said that figures so far have been artificially low due to the cost of the acquisitions, consolidation and marketing that has been necessary in the cable industry over the last few years.

The most significant purchase for NTL was Cable & Wireless Communications, the UK residential cable business it acquired in 1999 to become the UK’s largest cable operator. John Gregg, chief financial officer, said that NTL has been a beneficiary of the substantial consolidation which the cable industry has undergone, adding that 90% of this consolidation and such acquisitions are now behind the company and the industry.

However, huge marketing costs are still to be endured as a £9 million branding spend is planned for this quarter alone. NTL says it is in an aggressive roll-out phase and that this involves a large spend on marketing and sales – an incremental spend of £175 million for the quarter.

The UK residential business was said to be performing well, with 124% growth year on year for Q4 2000. The company says it has put in place the penetration that will offer significant embedded growth.

Stock on the NYSE was up žp at 36p by midday, following the trading statement.

NTL: 01252 402 000 www.ntl.com