NTL:Telewest Hit by More Competition as Profits Rise
Cable operator NTL: Telewest yesterday reported higher second quarter revenues and operating profit compared to the first three months.
That was thanks to its merger with Telewest, but the firm also admitted increasing competition had hit customer numbers and warned of more short-term losses.
The cable TV, internet and telephone service provider lost a net 18,900 customers in the quarter, reversing from a net 25,800 addition in the first quarter and 62,500 gains a year ago, NTL said, because of the merger and a cut-throat battle against satellite operator BSkyB and telecoms giant BT.
Churn, or the percentage of customers who leave the company each month, also increased to 1.5 per cent from 1.3 per cent in the previous quarter and 1.4 per cent a year ago.
"Positive customer net additions in old Telewest areas were outweighed by net disconnections in old NTL areas," the company said. …