NTL posts increase in second quarter revenues

LONDON - Cable firm NTL has reported an increase in revenue during the second quarter of 2006 mainly as a result of its acquisition of rival Telewest.

Total revenue for the group across the quarter was £884.3m, up £272.9m compared with the first quarter of 2006 and up £401.8m year-on-year, providing a healthy backdrop to NTL's merger with Virgin Mobile, which was completed in June.

NTL said that ARPU was up slightly by 71p to £42.21 as was revenue per customer, up to 212p from 209p. It said triple-play penetration rose to 37.1%, up from 34.9% in the first quarter.
 
NTL said that consumer revenue in the second quarter was £644.7m, up £183.3m compared to the first quarter of the year and up £265.8m compared to the second quarter of 2005.

Steve Burch, chief executive officer of NTL, said: "We are delighted with today's strong operational and financial results. They show continued evidence of improvements in our consumer business. We also achieved £15m of estimated synergy cost savings in this quarter, which puts us firmly on track to achieve the £250 million run rate as promised by the end of 2007."

The broadcaster did, however, admit that additional customers signing up to its services would be lower in the second quarter of this year compared to the first quarter, and that customer losses amounted to 18,900 in the second quarter.

Burch added: "Now that we have closed the Virgin Mobile transaction, we can really start to reap the benefits of being able to exploit our bundling, branding and network strengths along with new channels to market. The launch of quad-play and Free TV bundles will provide more opportunities to offer our consumers unbeatable value and service, whatever their communication and entertainment needs."

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