'Business as usual' at NTL

NTL says it achieved solid quarterly figures after adopting a "business as usual" approach during life-saving refinancing.

The US parent company filed for Chapter 11 bankruptcy protection in May but hopes to emerge from the process in October following a debt-for-equity swap.

Chief executive Barclay Knapp said NTL had made substantial progress with the overhaul of its £12 billion debt pile and held firm at an operating level as funding constraints curtail growth plans.

Revenues across the group were marginally lower on a year-on-year basis in the second quarter at £627 million, with underlying earnings of £174 million down from £177 million in the previous three months but up from £110 million a year earlier.

However, figures show the core UK-based NTL Home division lost 70,000 subscribers in the quarter as publicity surrounding the restructuring hurt the company, based in Hook, Hampshire.

Mr Knapp said a tight control on costs, particularly after a raft of job cuts at the end of last year, had helped the earnings figure.

He added: "We have had a solid performance in the second quarter and are looking forward to emerging from the Chapter 11 process on time.

"The environment is not getting any better so we are going to be prudent about how we spend money. But, by and large, today's results are as expected."

The company admitted that it had suffered from negative publicity surrounding its financial position and said there was no assurance the problems would not have a long-term impact on its brand.