NTL Inc, the New York-based cable company operating in the UK, continues to enjoy soaring revenue on the back of an acquisitive business plan, but losses are also climbing rapidly as it absorbs new companies. In the three months to September 30, NTL made a net loss of $278.1m, on revenue up 128% at $417m. This compared to a loss of $138.1m for the same period last year. For the first nine months, the loss was $856.9m on revenue that rose 125% to $1bn, up from a loss of $336.1m through September last year.
NTL is currently completing the takeover of Cable & Wireless Communications and is strongly tipped as favorite to acquire the one remaining independent cable operator Telewest Communications Plc. Chief executive Barclay Knapp said it has been focused on integrating recent acquisitions, increasing penetration and reducing churn in the acquired areas. Customer penetration of the core NTL business increased from 42.1% to 46.6% over the past year and, including acquired companies, penetration has reached 39.6%.
NTL refuses to release details of its digital plans for competitive reasons but claims to have developed the world’s most advanced and comprehensive package of services, integrating enhanced TV, internet, email and interactivity. In July French incumbent carrier France Telecom SA spent $5.5bn to take a 25% stake in the company (NBD 07/27/99).
