ntl losses widen on the back of acquisitions

8 Nov 2006

UK cable giant ntl Incorporated has posted a widening in losses in the third quarter as operating costs and restructuring expenses related to its transformation into a quad-play service provider impacted on its results. In the three months ended 30 September 2006 the net loss was GBP96.1 million (USD183.2 million), compared with a loss of GBP52.1 million a year earlier. Quarterly revenues more than doubled year-on-year to GBP1.03 billion, on the back of the acquisitions of cable rival Telewest in March and mobile virtual network operator (MVNO) Virgin Mobile in July. The addition of mobile telephony to ntl’s bundled packages of fixed line phones, cable TV and broadband internet helped spur take-up, and gross customer additions in the quarter increased by 19% to 229,200. However, customer disconnections increased by 55,000, which the company attributed to users moving house to residences outside of its network coverage, as well as a rise in the number of customers being disconnected for not paying their bills. ntl ended September with 3.22 million broadband subscribers and 4.5 million mobile users. The company used the announcement to confirm that it would be rebranding all its residential products under the Virgin banner in the first quarter of 2007. It will also begin trials of its first 50Mbps download broadband connection later this month; currently it offers peak speeds of 10Mbps.

United Kingdom, Virgin Media, Virgin Mobile UK