LONDON (Brand Republic) - Shares in UK cable operator Telewest Communications slipped this morning on the news that full-year net losses widened 24% after a period of heavy investment in its digital cable services. Shares fell 4.45% or 5.5p to 112.75p.
Full-year losses increased 25% to £706m as the company met its target of 500,000 digital subscribers. This target was originally set for the end of 2000 but was put back until the end of the first quarter 2001 because of a shortage of components for its set-top boxes, supplied by UK manufacturer Pace.
Telewest’s stock has fallen more than 70% in the last year, amid investor concern over the company''s £4.4bn debt burden and the delay in the rollout of its digital TV services.
The company said that 28% of its cable customers subscribe to digital services. However, average monthly cable revenues are said to have declined 7% to £18.17 from the last quarter.
Last week, Telewest secured a £2.2bn loan which will enable it to continue investing and developing its digital offering.