NTL first-quarter revenues up as job losses loom

LONDON - NTL has reported revenue figures for the first quarter of 2006 of £611m, up £127m on the final quarter of 2005, despite confirming that the cable giant would be looking to make up to 6,000 redundancies, some compulsory, by the end of 2007.

The broadcaster said that most of the added revenue was due to the merger between NTL and Telewest conducted in July 2005.

The company is now looking to achieve £250m of savings each year as part of its rationalisation plans.

NTL said that during the first quarter it had added 25,800 subscribers to its services and that the average revenue created from each subscriber had risen £0.23 to £41.50 during the quarter. 

The number of subscribers to NTL's broadband services fell during the quarter from 191,700 during the final quarter of 2005 to 191,400 in the first quarter of 2006.

Steve Burch, chief executive officer of NTL, said: "The first quarter showed real evidence of operational improvements in our consumer business, with an increase in Arpu driven by our successful focus on quality customer growth, improvements to revenue generating units per customer and increasing triple play penetration.

"The merger of NTL with Telewest completed on March 3 2006 and our integration is progressing well. Today, we are announcing our plans to accelerate our integration program to achieve a run rate of at least £250m of annualised cost synergies by the end of 2007."

Burch said that the redundancies would be partially due to an initiative to outsource jobs for the firm.

"Part of this process will involve outsourcing a significant number of jobs, where employment would be transferred to an external organisation, as well as actual job reductions. In total, this will involve around 6,000 employees by the end of 2007. Around 80% of the reduction will take place within 12 months," he said.

NTL is currently looking to acquire Virgin Mobile by July this year in a £960m deal, which will allow the merged entity to enter into the elusive triple-play market to compete against rivals BSkyB, Microsoft and BT and offer multi-platform packages including television, online and mobile to the consumer.

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