NTL’s Irish sell-off moves closer

INTEREST from potential buyers in cable TV operator NTL’s Irish business has been “considerable”, the company’s British parent said yesterday.

NTL confirmed months of speculation that its Irish business was on the market when it released its full-year results yesterday. “We are evaluating strategic alternatives for our business in the Republic of Ireland, which may include divestiture,” the company said. “Considerable interest has been expressed by prospective purchasers.”

Among the names being linked with NTL’s Irish operations are American cable firm UGC, which owns southern-based cable operator Chorus, and John Riordan, the Irish-born former top executive at Dutch cable giant UPC. American merchant banking outfit Veronis Suhler Stevenson is also in the running.

The sales process is believed to be nearing completion and could fetch up to €250 million for NTL, just a fraction of the €680 million it handed over in 1999 when it took over the former Cablelink from RTÉ.

The Irish business, which provides cable TV services in Dublin, Galway and Waterford and recently began a major initiative to roll out broadband high-speed internet access using its cable network, saw revenues increase 3% to €28 million in the three months to December. NTL said higher prices and better take-up of its digital TV services were the main reasons behind the improvement.

“We are delighted with the continued robust financial performance of NTL Ireland,” said NTL Ireland managing director Graham Sutherland.

The company added just over 4,000 new subscribers in the last quarter of 2004, bringing the total to just under 348,000. Mr Sutherland said the subscriber growth figure was “particularly encouraging.” “We continue to aggressively invest in both digital television and broadband,” he said.

It made its broadband package available in 22,000 more homes during the quarter, bringing the total to 88,000, which was shy of its original target of 100,000 by year-end. This target was met in mid-February.

Around 2,500 new customers signed up for NTL broadband during the quarter, bringing the total to 7,500. The company only offers broadband in Dublin at present but will target 35,000 homes in Waterford and Galway before the summer.

NTL said it would make a further announcement on its broadband offering within weeks. It came under fresh pressure from rivals earlier this week, when Eircom and Esat BT announced they would double connection speeds on their basic products, at no extra cost to customers.