Telewest Signs Up 107,000 Broadband Internet Customers, Losses Deepen
Telewest Communications has signed up more than 107,000 broadband internet customers – representing an annual growth of 1,135%, the cable operator announced this morning.
Telewest was the first cable company to really begin to drive broadband internet access through its Blueyonder service. BT, meanwhile, has dragged its heels over wholesale pricing of opening up its networks to allow operators to deliver ADSL services – which are, in any event, slower than broadband connections.
Telewest has effectively joined forces with rival cable group NTL in order to more efficiently market broadband services to consumers (see Forecasts).
The news of broadband growth comes as Telewest unveiled its Q4 financial results. EBITDA rose by 26% to £319 million, whilst turnover grew by 17% to £1.3 billion. Nevertheless, pre-tax loss for the year was £1.9 billion, after exceptional items; the previous year loss before tax was just £701 million, reflecting the cost of investing in and marketing of the companies services.
Telewest, like rival group NTL, is heavily-indebted – to the tune of around £5.0 billion. This, along with increasing losses, is naturally causing investors concern (as can be seen in the plummeting share price below). However, if it continues to hit business targets, investors will continue to provide backing for the company.
By midday today shares in Telewest were up 2Âźp at 20p.
