Revived NTL ups profits
- Added:
- Mar 31, 2003
The company generated an EBITDA profit of £661m in the year to 31 December 2002, against £446m in the previous year. Sales were almost static, at £2.17bn, as customer numbers declined on worries about the company's financial standing.
NTL emerged from Chapter 11 bankruptcy protection in January, having exchanged almost $11bn in debt for equity. This had the knock-on effect of reducing annual interest payments by about $800m.
The company still owes $6.5bn to its lenders, but CEO Barclay Knapp said this is "manageable".
Customer churn has fallen for the past four quarters and is currently at about 13%, down from almost 18% last year. For the present quarter, NTL reported that 24,000 new customers have been added so far, reversing a negative trend that plagued the company throughout 2002.
NTL also said it intends to take a tougher line on those customers that fail to pay their bills on time and expects to cut off about 25,000 customers as a result.
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