NTL reports revenues of £485M, down from £512M in 4Q05, while Telewest reports revenues of £435M, up from £336M

February 28, 2006

3 Min Read

LONODN -- NTL Incorporated (NASDAQ: NTLI) today announces year end results together with summary year end results for Telewest Global, Inc. (NASDAQ: TLWT). Both companies will file their Form 10-K filings shortly. NTL and Telewest have agreed to a merger, which is being presented to their stockholders for approval on March 2, 2006.

NTL Highlights

  • RGUs up 8 per cent to 6.4m vs. Q4 2004 (on-net and off-net combined)

  • Triples up 27 per cent vs. Q4 2004; triple play penetration of 29 per cent (on-net)

  • RGUs per subscriber at 1.99, up from 1.94 in Q4 2004 (on-net)

  • Net additions of 20,600 were flat vs. Q4 2004 (on-net)

  • Consumer revenue increased modestly vs. Q3 2005 on strong RGU growth and stabilized ARPU

  • Business revenue stabilizing driven in part by demand for Ethernet

  • Moving forward with strong foundation for free cash flow generation Telewest Highlights (all on-net)

  • RGUs up 11 per cent to 4.1m vs. Q4 2004

  • Triples up 42 per cent vs. Q4 2004; triple play penetration of 37.4 per cent

  • RGUs per subscriber at 2.17, up from 2.04 in Q4 2004

  • Net additions of 20,135

  • Consumer revenue growth of 5 per cent vs. 2004

  • Business revenue remains stable with improved revenue mix from new offerings



James Mooney, Chairman of NTL, commented: "Our attention during the fourth quarter was squarely focused on improving our operations as we prepare for our pending merger. These efforts included continuing to drive end-to-end process improvements, stabilizing ARPU and Business revenue and moving forward with a foundation for long-term growth.

“Telewest had another strong quarter and together we are prepared to take advantage of the multiple synergies inherent with the merger. I am confident the leadership of our new CEO, Steve Burch, and our strategies should make us extremely competitive and drive significant free cash flow going forward. This will provide us with strong financial flexibility and improved capital deployment options as a merged company."

Commenting on the quarterly results for NTL and Telewest, Stephen Burch, Chief Executive Officer of NTL, said: "During the quarter, both companies continued to make considerable strides in enhancing their customer base by adding quality RGUs. This is evidenced by the continued growth in triple play subscribers and uptick in the number of RGUs per subscriber. Broadband remains a growth engine for both companies as each continues to differentiate its product offerings versus the competition with unmatched features, enhancements and industry leading speeds. Talk Plan penetration achieved further consumer acceptance, mitigating the impact of fixed to mobile substitution and increasing product bundle attractiveness. We believe that Television is poised to renew its growth as the rollout of additional revenue sources, such as VOD, SVOD, DVR and HD continues, demonstrated by Telewest achieving its best quarter of TV net additions in four years. Telewest’s Flextech content assets also enjoyed a strong quarter and the outlook continues to remain promising.

“As we enter 2006, our efforts will be focused on successfully integrating NTL and Telewest. We will leverage the collective abilities of our past integration experiences and our long standing familiarity of one another’s operations. Furthermore, we have built a world class management team by selecting the best from both companies, and through the appointments of those who have the skills to help us realize the previously discussed synergies. We believe that our management team’s experience and leadership will enable the combined company to become a premier communications provider in the UK. We look forward to providing further details related to the merger integration as we move ahead.”

ntl group ltd. (Nasdaq: NTLI)

Telewest Global Inc. (Nasdaq: TWSTY)

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