NTL Qtr 1 results - 191,000 new broadband subscribers
The following the merger of NTL and Telewest on March 3, 2006, NTL Incorporated became the UK's largest provider of residential broadband and the UK's leading provider of triple play services.
On the 9th May 2006, NTL Incorporated reported first quarter results for the quarter ended March 31, 2006.
Steve Burch, Chief Executive Officer of NTL, said:
“The first quarter showed real evidence of operational improvements in our consumer business, with an increase in ARPU driven by our successful focus on quality customer growth, improvements to RGU per customer and increasing triple play penetration.
“The merger of NTL with Telewest completed on March 3, 2006, and our integration is progressing well. Today, we are announcing our plans to accelerate our integration program to achieve a run rate of at least £250 million of annualized cost synergies by the end of 2007. Part of this process will involve outsourcing a significant number of jobs, where employment would be transferred to an external organization, as well as actual job reductions. In total, this will involve around 6,000 employees by the end of 2007. Around 80% of the reduction will take place within twelve months. The cost savings from the outsourcing and the job losses combined will be equivalent to around 3,400 full-time equivalent employees.
“On April 4, 2006, we announced our offer to acquire Virgin Mobile and a license for the Virgin brand allowing us to transform from the UK’s leading triple-play provider into a national entertainment and communications quad-play company, harnessing the power of the Virgin brand and leading our industry in product convergence.
“With the growth opportunities in our markets, together with substantial merger synergies, we believe we can drive significant free cash flow generation going forward, providing us with strong financial flexibility and improved capital deployment options.”
Broadband
We continue to experience strong growth in the number of broadband subscribers, with net additions of 191,400 in the quarter, compared to 191,700 in the previous quarter and 168,400 in the same quarter last year. Broadband penetration stands at 24.0% of our homes marketable and the outlook for growth remains strong.
As an end-to-end network owner, we have competitive strengths in the quality of broadband service that we offer. Customers can receive consistent speeds no matter where they live and our top speeds of 10Mb are available throughout our addressable areas.
Labels: ntl-broadband
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