NTL Ireland added 4,100 new customers in the fourth quarter of 2004 as its US owners prepared an auction process to sell the State's largest cable television network.

The company, which now supplies pay television services to 347,800 customers in Dublin, Galway and Waterford, also reported a small increase in revenues in the final three months of 2004.

NTL Group's fourth-quarter and year-end results for 2004, published yesterday, show NTL Ireland's revenue in the fourth quarter was $35.9 million (€27 million), an increase of 3.2 per cent on the same period of 2003. The firm said higher revenues were produced by a greater uptake of digital television services and better pricing for its television services.

About 76,000 NTL Ireland customers have chosen to upgrade to digital television. A further 19,000 customers subscribe to the firm's wireless digital television service.

NTL Ireland has now signed up 7,500 broadband customers, roughly double the number of broadband subscribers it had at the same time last year.

The firm has increased to 88,000 the number of homes within its franchise area that can sign up for high-speed internet services.

NTL Ireland hopes to reach 140,000 of the 463,000 homes in its catchment area with upgraded cable by mid-2005.

The results show the firm spent about £11 million (€16 million) on capital expenditure in 2004.

In its first public comments on the sale process for NTL Ireland, NTL Group said in its results statement: "We are evaluating the strategic alternatives for our business in the Republic of Ireland, which may include a divestiture. Considerable interest has been expressed by prospective purchasers."

Three bids led by Chorus's parent UnitedGlobalCom, cable pioneer John Riordan and Irish media firm Setanta are currently being prepared for submission at the end of the month.