Barclay Knapp does well

[welwynrose]

from the evening standard

NTL founder Barclay Knapp is to receive a pay-off worth £1.3 million after stepping down today as chief executive of the cable company.

The figure, which reflects his three-year contract, comes eight months after NTL agreed a deal with lenders to pull it out of bankruptcy protection.

Mr Knapp said he believed now was the right time to step down as chief executive, after second quarter results showed the company "back on track".

He will hand over control to Simon Duffy, who joined NTL in February as chief operating officer following a spell as finance director at Orange.

Mr Knapp, who helped found NTL ten years ago, said he would remain at the company until the end of 2003 to advise management on strategy.

He was at the helm when NTL was forced to file for bankruptcy protection in May 2002 after debts spiralled on the back of a spending spree made at the height of the telecoms boom. The restructuring handed control to bondholders.

Mr Knapp defended his pay-off, and pointed out that he suffered along with other shareholders in the overhaul, because he had never sold any of his shares.

He added: "I have experienced real highs and lows during my 10 years at NTL and I remain as passionate as ever about the future of cable in the UK."

Announcing figures for the three months to June 30, Mr Knapp said he had been encouraged by a £2.3 million increase in revenues to £551.3 million, and a rise in earnings to £173.8 million from £167.4 million a year earlier.

Bottom-line losses in the quarter narrowed to £159 million, an improvement of 38% on last time.

Mr Knapp added: "NTL is well ahead of the financial targets filed in January as part of our reorganisation."

NTL's core Home division added 39,800 new customers in the quarter while its churn rate - the number of subscribers leaving the service - fell to 12.9%.

[Rob]

On the face of it some good results.

Well done to Mr Knapp, but these fat cats really do seem to be able to get a lot of money for no visible effort other than sitting in their ivory tower.

As for churn down to 12.9%, how can a company afford to loose over 89,000 customers in one quarter? That's a heamorrhage in anyone's book.

[orangebird]

Originally posted by MovedGoalPosts
On the face of it some good results.

Well done to Mr Knapp, but these fat cats really do seem to be able to get a lot of money for no visible effort other than sitting in their ivory tower.

I know he's buggered things up a little, but do you honestly think he does nothing all day other than give out instruction?

As for churn down to 12.9%, how can a company afford to loose over 89,000 customers in one quarter? That's a heamorrhage in anyone's book.

Some of that percentage is from involuntary churn - those who ntl cut off through non-payments etc. Not a great deal, but some.

The way things are at the mo, the fact ntl are still gaining more than they are losing kind of helps to bear the brunt. Not ideal, obviously, but again, every little helps!

[Rob]

I'm more than happy to accept that some of the churn will be bad payers and the like. However it must be easier (and less expensive) to retain customers than have to replace them. On that basis I dont think the 12.9% figure is a healthy indication of ntl's current wellbeing. I acknowledge that efforts are being made, and churn has rbeen reduced, but trheres a long way to go. If I was an investor I'd be concerned.

[grum1978]

Originally posted by MovedGoalPosts
I'm more than happy to accept that some of the churn will be bad payers and the like. However it must be easier (and less expensive) to retain customers than have to replace them. On that basis I dont think the 12.9% figure is a healthy indication of ntl's current wellbeing. I acknowledge that efforts are being made, and churn has rbeen reduced, but trheres a long way to go. If I was an investor I'd be concerned.

if a customer moves house and takes the service with them they are counted on both disconnecting and then a new customer so the figures might not be as bad as it seems

[ic14]

I cant belive someone who nearly bankrupt a company is getting a huge payful like that.

It proves how messed up this contry is!

[Undisputedtruth]

Originally posted by grum1978
if a customer moves house and takes the service with them they are counted on both disconnecting and then a new customer so the figures might not be as bad as it seems

It works both ways when a customer moves into an NTL area, so we can safely assume the figures on customers moving of no consequence.

[Escapee]

welwynrose said

Mr Knapp defended his pay-off, and pointed out that he suffered along with other shareholders in the overhaul, because he had never sold any of his shares.

Is it my imagination, or does anyone else remember him selling shares around the time befor Leigh Woods left and Carter joined.

I am sure this came out in a meeting we had with Woods, at the time Knapp was telling everyone that the shares were going to top $300 (Approx $90+ when he said it) I am sure that Woods confirmed that Knapp was selling shares when questioned by someone.

Any other employees/ex-employees remember that ?

[grum1978]

Originally posted by Undisputedtruth
It works both ways when a customer moves into an NTL area, so we can safely assume the figures on customers moving of no consequence.

Think you kinda missed my point never mind!!!!

[gallego1]

Just think


If they sorted London out then the new customer base would be a lot greater than the 39k for last period and the % lost would be a lot less and start to look reasonable.


BUT

Will that happen in this life time ?


Only time will tell

[Rob]

Originally posted by grum1978
if a customer moves house and takes the service with them they are counted on both disconnecting and then a new customer so the figures might not be as bad as it seems

One way of ensuring the figures are suitably distorted.

You'd think that such customers would be "counted out" as the churn percentage appears to be the most prominent statistic ntl currently worry about.

I'm sure that as the new chappie in charge "Duffy" I think it is, with his claimed financial background, will mean even more concealed figures and cooked books to make ntl look more financially sound than they are.

*edit: thats not intended to be libelous, just financial reality in the big corporate world.

[SMHarman]

Originally posted by MovedGoalPosts
One way of ensuring the figures are suitably distorted.

You'd think that such customers would be "counted out" as the churn percentage appears to be the most prominent statistic ntl currently worry about.

I'm sure that as the new chappie in charge "Duffy" I think it is, with his claimed financial background, will mean even more concealed figures and cooked books to make ntl look more financially sound than they are.

*edit: thats not intended to be libelous, just financial reality in the big corporate world.

You have to think how this is counted. I imagine a customers account is permenantly locked to an address, the only way a customer can move addresses is to close that account and open a new one.

This is probably also necessary from a system process to ensure engineers go to the old and new address to add / remove equipment, and to ensure that the signup fees etc are charged.

Churn will be measured by counting the closed accounts and newly open accounts in the period. How do you distinguish between a closed to move and a closed account? Not easily or accurately, would require a new field in the billing closure pages marked as account move, the CSRs would have to fill this out accurately, it could be used to massage churn and what happens if opens flagged as move do not equal closed. You would need system checks and old / new account number s cross matched.

Easier to keep them in.

I'm sure if you cancel a pay monthly mobile phone and then get a new one / new number on the same network, that would be considered churn also.

Originally posted by ic14
I cant belive someone who nearly bankrupt a company is getting a huge payful like that.
It proves how messed up this contry is!

It illustrates how current business thinking has become bankrupt as far as ideas are concerned. Never should failure be rewarded. His shares should be seized and put into the company finances.

in the end it's not Mr Knapp who rescued the company it's the customers who remained loyal and are paying for the disaster he created with higher prices and the bondholders who agreed the deal.

[orangebird]

Originally posted by Gogogo
It illustrates how current business thinking has become bankrupt as far as ideas are concerned. Never should failure be rewarded. His shares should be seized and put into the company finances.

in the end it's not Mr Knapp who rescued the company it's the customers who remained loyal and are paying for the disaster he created with higher prices and the bondholders who agreed the deal.

I agree with the not rewarding failure etc - but what higher prices are you on about?? The cheaper call packages perhaps? Or 1meg BB being reduced from £50 to £35??...

Originally posted by orangebird
I agree with the not rewarding failure etc - but what higher prices are you on about?? The cheaper call packages perhaps? Or 1meg BB being reduced from £50 to £35??...

What am I on about? So, are you denying Orangebird that there have been price increases! TV digital packages have increased in prices that's a fact! Telephone connexion charges have slowly crept up to 5p. Moving house there's now a £50 charge down here! I rest my case.

BB! What's that? We in exCWC, exVideotron land no nothing about BB aren't you lucky!