Telewest back in the black

12 Aug 2005

UK cable operator Telewest reported a return to profitability in the second quarter, posting net income of GBP19 million (USD34 million) compared to a loss of GBP126 million a year earlier; the 2004 figure included a significant one-time charge related to the company’s financial restructuring. Telewest, which is expected to announce plans to merge with larger rival ntl anytime soon, added 15,000 subscribers during the three months to June and reported strong gains at its content division. Adjusted earnings before interest, tax, depreciation and amortisation climbed from GBP122 million to GBP158 million, while revenues rose to GBP381 million from GBP326 million previously. Subscriber churn edged 0.2% higher quarter-on-quarter to 1.2%, but was only slightly higher than the 1.1% figure recorded in June 2004. ARPU levels in the quarter fell, however, from GBP45.34 to GBP44.86 as customers shied away from using as many telephony services.

United Kingdom, Virgin Media