ntl confident as operating losses fall

Cable operator ntl today said it had seen continued growth in customers and revenue as it posted an 86% narrowing in quarterly operating losses.

The New York-listed group said its ntl:Home cable division in the UK had increased customer numbers by about 60,500 to nearly three million during the second quarter, above the level needed to achieve its target of 50% market share by 2008. Total revenues rose 6% to £584.4m (€886m).

It said operating losses dropped to £7m (€10.6m), against £51m (€77.3m) in the same quarter last year, thanks mainly to a £29.9m (€45.3m) improvement in profits from its combined businesses among other factors.

Ntl said the improvement was led by ntl:Home, where profits increased by £12.5m (€18.9m) as a result of increased business, although partly offset by higher programming costs and sales and marketing spending.

Chief executive Simon Duffy said the company continued to achieve substantial progress in achieving its targets of increased market penetration, revenue growth and margin and cash-flow improvements.

“As I look to the second half of 2004, I expect continued progress on all four of our stated objectives,” he said.