NTL Reports Q2

NTL reports revenues increased 6% in Q2, led by increase in residential customers; net loss was £249M including debt repayment of £162.3M

August 4, 2004

3 Min Read


  • Combined segment profit margin expansion continues on strong path

  • ntl's Q2 2004 performance demonstrates solid progress over Q2 2003: continued growth in customers, revenues, segment profit and cash flow from operations

  • ntl: Home now serving over 3m customers in the UK

  • Exceeded target customer penetration with 60,500 net customer adds and 115,700 additional RGUs achieved in ntl: Home during Q2 2004

  • Consolidated revenues up 6.0 per cent to GBP 584.4m and ntl: Home revenues up 7.7 per cent to GBP 397.8m compared to Q2 2003

  • Combined segment profit up 17.3 per cent to GBP 202.4m and margins expanded 330 basis points to 34.6 per cent compared to Q2 2003

  • Q2 2004 net loss of GBP 249.8m includes the GBP 162.3m loss on extinguishment of debt of which GBP 155.8m represents the non-cash write-off of previously capitalised and unamortized financing costs and discounts relating to repaid debt

ntl Incorporated (NASDAQ: NTLI) announced today its second quarter 2004 results. Commenting on the results, Simon Duffy, Chief Executive Officer of ntl, said:

"ntl continues to achieve substantial progress on its stated objectives of increased market penetration, revenue growth, margin expansion, and enhanced cash flow. The progress in the second quarter is particularly satisfying given the continued execution on major initiatives such as our call centre consolidation and Harmony implementation.

"For the fourth consecutive quarter, ntl: Home delivered net customer additions (of 60,500) in excess of the 50,000 per quarter needed to achieve its goal of around 50 per cent customer penetration of marketable homes by the end of 2008.

"ntl: Home continued on its growth path, although offsetting the growth this quarter were one-time adjustments to analogue television and off-net revenues, the seasonally lower telephony usage and the impact of a BT change in interconnect pricing. Together, these factors reduced ntl: Home revenue by approximately GBP 7.0 million ($12.8 million).

"ntl: Business revenues were also affected by seasonality quarter over quarter, where traditionally high first quarter public sector spend was not repeated in the second quarter. ntl: Business revenues were also unfavourably impacted by the delayed timing of project work.

"The growth in customers and RGUs, combined with gains in efficiency, resulted in a 130 basis point expansion in margins over Q1 2004, and a 330 basis point expansion in margins over Q2 2003, to 34.6 per cent.

"The financial results achieved are particularly noteworthy given the continued progress towards delivery of our restructuring initiatives. During the second quarter we closed a second operations centre and announced two further call centre closures as well as the outsourcing of our technical service bureau.

"As I look to the second half of 2004, I expect continued progress on all four of our stated objectives. This reflects an improving sales pipeline, the expected delivery of product enhancements, the already announced price increases in ntl: Home and the continued execution of our key restructuring initiatives."

NTL Group Ltd.

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