Telewest cuts losses as customer base declines

The company today reported an improved pre-tax loss of £206m for the first six months of the year, compared with £236m in 2002, with turnover flat at £674m despite reduced customer numbers.

Telewest said it disconnected 7,000 non-paying customers after cleaning up its database systems and lost a further 17,000 households during the three months to the end of June, after increasing the prices of basic analogue packages.

But it pointed to growth in the number of 'triple play' customers, which are being targeted to improve revenues. These users receive television, internet and fixed line telephone services and now account for 13% of Telewest's overall user base.

It added 21,000 customers that pay for these bundled services in the second quarter, taking its triple play user base to 228,000, almost double that of last year.

Forthcoming launches include a wireless self-installation broadband kit for existing digital customers. Telewest MD, Charles Burdick said: "We are also continuing to improve the quality of our customer base, increase the number of our 'triple play' customers and introduce targeted new offers and services, all of which are driving average customer revenue and reducing churn."

However, Burdick did not reveal any more details of the proposed £3.5bn debt-for-equity swap that will leave shareholders with just 1.5% of the company, the UK's second biggest cable operator after NTL.





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