Telewest Communications could be ready to merge with its cable rival NTL at the start of 2004, according to managing director Charles Burdick.
In an interview with the Wall Street Journal, Burdick said that Telewest would complete financial restructuring in the second quarter and was on target to break even by the end of the year.
“Our plans show the second quarter of 2004 cash-flow positive, but I have the team focused on internal targets that move that up to the fourth quarter of 2003,” he said.
A merger of NTL and Telewest has long been regarded as the only way in which the two operators can realistically hope to compete with BSkyB. However, both companies have been hit by huge debts and falling subscriber numbers and bondholders want reassurances before they endorse moves towards union.
NTL is somewhat ahead of Telewest having successfully emerged from bankruptcy protection but its chief executive has admitted that earnings are unlikely to rise more than 3% this year.
Burdick claims that Telewest is in better financial shape than its rival and is encouraged by the fact that the company now has 250,000 broadband subscribers. He accepts that a merger represents a logical next step.
“I’ve always been consistent in saying we should merge,” he said. “The real battle out there is with BT and BSkyB, so my view has always been, once we figure out the liquidity situation, we should just get on with it.”
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