ntl Release Q2 2005 Financial Results
# Aug 9, 06:30 PM by Mick
NTL Incorporated (NASDAQ: NTLI) today reported its second
quarter results for 2005. The 2nd Qtr saw a record of 205,500 gross additions, (171,400 on-net) Strong broadband growth of 111,800 (83,700 on-net) in the quarter and an operating income of £6.4 million compared to loss of £22.6 million for Q2 2004.
Commenting on the results, Simon Duffy, Chief Executive Officer of ntl, said: “During the second quarter we focused on driving strong operating performance. Further improvements in sales productivity led to another record quarter of gross customer additions. Net customer additions were bolstered by our continued improvement in customer churn. Broadband continued to grow strongly, reinforcing our position as the UK’s largest residential broadband supplier. Offers such as “3 for £30” have resulted in a 17 per cent increase in the number of customers taking all three of our services compared to the second quarter of 2004.”
Second quarter revenue was £482.5 million, down 2.3 per cent compared to the prior year period. The decrease is primarily due to lower Business revenue.
ntl state that in the third QTR 2005 they will be implementing a new customer acquisition policy involving enhanced credit screening of potential customers and a revised sales commission structure. The new policy will improve the quality of customer adds, decrease bad debt and improve involuntary churn.
ntl have said that It could impact gross adds in the near term, but have also said they feel the new policy is right for the long-term health of the business.
ntl serves a total of 3.3 million residential customers with 1.6 million broadband customers.